Federal Reserve Announces Rate Cut Amid Shifting Economic Risks

Federal Reserve Chairman Jerome Powell announced a shift in risk balance, citing downside risks to employment and upside risks to inflation, prompting a rate cut on September 18.

This policy adjustment aims to stabilize economic conditions, affecting market dynamics like Bitcoin and Ethereum, which showed muted responses post-announcement, reflecting broader financial uncertainties.

Federal Reserve Cuts Rates to Address Economic Concerns

Federal Reserve Chairman Jerome Powell announced a policy rate cut in response to shifting economic risks on September 18, 2025. The decision underscores concerns about growing downside risks to employment and increasing upside risks to inflation. This announcement follows an FOMC meeting where the need for a rate cut became apparent.

The risk balance has shifted, with downside risks to employment and upside risks to inflation, making the rate cut appropriate.

The risk balance has shifted, with downside risks to employment and upside risks to inflation, making the rate cut appropriate.

Cryptocurrency Markets Show Resilience Post-Rate Cut

Did you know? Bitcoin and Ethereum remained stable following the September 2025 rate cut, unlike previous cycles which saw sharper fluctuations. This reflects a more mature market response to macroeconomic policy shifts.

According to CoinMarketCap, Bitcoin (BTC) is currently priced at $115,868.19, with a market cap of $2.31 trillion and a market dominance of 57.16%. Its 24-hour trading volume reached $58.38 billion, marking a 32.38% change. Over the past 90 days, BTC recorded a 10.99% increase.

The Coincu research team suggests that the Federal Reserve’s decision could impact regulatory strategies and market resilience. Several cryptocurrency experts believe that while the immediate effects are muted, the decision may drive future investment strategies, aligning macroeconomic policies with investor sentiment.