On November 7, the Federal Reserve made a vital decision for the US economy to cut interest rates by 25 basis points in October 2024.
The U.S. economy is also set for a sharp turnaround following the historic results of the 2024 presidential election. The election brought Donald Trump back to the White House, where he will help the country continue to battle persistent inflation rates, which fell to 2,1% earlier this week.
After years of fighting rising inflation, the Federal Reserve has made some progress, including moving closer to the central bank's 2% target.
This is what influenced the Fed's latest actions, which marked the second consecutive cut in US interest rates, something that has not happened in the last four years.
The decision officially lowers the federal funds rate to a range of 4,5% to 4,75%. Previously, the interest rate that banks charged for borrowing money was in the range of 4,75% to 5%. Positive data on the consumer price index give hope that this is not the last cut.
After this announcement Bitcoin (BTC), which had been volatile on Thursday, rose above its all-time high on Wednesday to hit a new peak of $76.
