Markets Steady as Fed Executes Expected 25 Basis Point Cut Ahead of Powell Remarks

Fed Delivers Expected Rate Cut; Bitcoin Slips as Markets Await Powell

The U.S. Federal Reserve cut its benchmark interest rate by 25 basis points on Wednesday, setting the target range between 3.75% and 4.00%, in line with market expectations. The central bank also confirmed plans to end its balance sheet reduction program on December 1, effectively wrapping up its quantitative tightening phase.

In its policy statement, the Fed noted that job gains have slowed this year and that while unemployment remains low, inflation has edged higher since earlier in 2025.

The vote was not unanimous: Kansas City Fed President Jeffrey Schmid dissented, preferring to hold rates steady, while Governor Stephen Miran supported a 50 basis point reduction instead.

Bitcoin (BTC) traded lower both before and after the announcement, changing hands at around $111,700, down roughly 3% over the past 24 hours. The decline extends recent weakness in digital assets as traders await further clarity from Fed Chair Jerome Powell, whose press conference at 2:30 p.m. ET is expected to provide guidance on future policy moves.

U.S. equities were modestly higher, with the Nasdaq Composite up 0.5%, while the S&P 500 gained 0.3%. The 10-year Treasury yield rose three basis points to 4.02%, and the U.S. dollar strengthened slightly after the Fed’s decision.

Market participants now largely expect another quarter-point cut at the December FOMC meeting, with futures pricing suggesting a continued, gradual easing path through early 2026.