The Federal Reserve rate cut is a 0.25% reduction to the federal funds rate, now 4.00%–4.25%, aimed at easing monetary conditions after weak jobs data and rising inflation; Bitcoin and other crypto showed muted moves immediately after the decision.
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Fed cut 0.25% to 4.00%–4.25%
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Bitcoin held just above $116,000 while Ethereum traded near $4,501 after the announcement.
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Jobs data revised down by 911,000 and inflation at 2.9% influenced the decision.
Federal Reserve rate cut trims the federal funds rate to 4.00%–4.25%; read concise crypto market reaction and implications for Bitcoin and Ethereum now.
What is the Federal Reserve rate cut?
The Federal Reserve rate cut is a 0.25 percentage point reduction to the federal funds target range, lowering it to 4.00%–4.25%. The move responds to weaker jobs data and moderating price pressures while aiming to support economic growth without abandoning the inflation mandate.
How did markets react to the Fed rate cut?
Crypto and risk assets showed muted immediate reaction. Bitcoin traded just above $116,000, up about 0.2% over the prior hour, while Ethereum was near $4,501.
Traditional safe havens moved higher; gold reached record levels above $3,730 as investors balanced growth hopes with inflation persistence (2.9% annually).
Why did the Fed cut rates now?
The Fed cited a downward revision in U.S. jobs data — a net 911,000 fewer jobs than earlier reported for a year-long period ending in March — and other signs of economic softening. These data, alongside current inflation readings above 2%, prompted a cautious easing move.
| Asset | Price (approx.) | Immediate reaction |
|---|---|---|
| Bitcoin | $116,000 | Flat to +0.2% |
| Ethereum | $4,501 | Flat |
| Gold | $3,730+ | Record high, +10% month |
| Federal funds | 4.00%–4.25% | Cut −0.25% |
How will the Fed rate cut affect crypto investors?
Lower interest rates can boost risk appetite over time, but immediate reactions depend on forward guidance and macro uncertainty. Expect volatility as investors parse Fed commentary for signals on the pace of future cuts.
Market signals before the decision showed high probability of a cut, yet geopolitical and policy disputes can mute the classic risk-on response.
Frequently Asked Questions
How much did the Fed cut the federal funds rate?
The Federal Reserve reduced the federal funds rate by 0.25 percentage points to a target range of 4.00%–4.25% in response to weaker employment revisions and other economic indicators.
Will the Fed cut rates again this year?
Future cuts depend on incoming inflation and employment data. Fed commentary and data releases will determine if a new easing cycle begins or if policymakers await more evidence of softening.
Key Takeaways
- Immediate action: Fed cut the federal funds rate by 0.25% to 4.00%–4.25%.
- Crypto reaction: Bitcoin and Ethereum were largely flat, indicating cautious market positioning.
- Macro drivers: A 911,000-job downward revision and 2.9% inflation influenced the decision; watch Fed guidance for next moves.
Conclusion
The Federal Reserve rate cut to 4.00%–4.25% offers modest easing aimed at supporting growth after disappointing jobs revisions and persistent inflation. Crypto investors should monitor Fed commentary, employment reports, and inflation prints to gauge the pace of any further easing and the likely market impact.
Published: 2025-09-17
Updated: 2025-09-17
Author: COINOTAG
Sources referenced in reporting include official Federal Reserve statements, U.S. Department of Labor data revisions, market pricing tools, and market research commentary (plain-text mentions only). Disclosure: Myriad is a prediction market and engagement platform developed by Dastan; editorial independence is maintained.
