WuBlockchain Weekly: Federal Reserve Announces First Rate Cut, Trump Buys Burger with Bitcoin, CZ Set for Release Next Week, etc
1. Federal Reserve Cuts Interest Rates by 50 Basis Points link The Federal Reserve announced a rate cut to 5%, lower than the anticipated 5.25%, marking the first rate reduction since March 2020. The median forecast indicates two 25-basis point cuts in 2024, totaling a 100-basis point reduction. Fed Governor Miki Bowman voted against the action, favoring only a 25-basis point cut, making this the first dissent from a board member since 2005. At the press conference, Jerome Powell stated that the 50-basis point cut would help sustain economic and labor market strength, reflecting the Fed’s confidence that inflation is moving toward the 2% target. China International Capital Corporation (CICC) remarked that the Fed’s move was more aggressive than expected. The Fed’s focus seems to have shifted from controlling inflation to prioritizing employment. Despite Powell denying victory over inflation, he now appears to be concentrating solely on employment. The Fed’s tolerance for rising unemplo...