Federal Reserve Cuts Rates for the First Time in 2025

The Federal Reserve has delivered its first interest rate cut of the year, trimming rates by 25 basis points after its September 17 meeting. The move was widely expected and shifts the target range from 4.25%–4.50% down to 4.00%–4.25%.

Good to know

• Fed cut rates by 25 basis points, with flexibility for future adjustments.
• One FOMC member reportedly pushed for a 50-point cut.
• Bitcoin is trading at $17,755, up 3.2% this week.

Fed Chair Jerome Powell said the committee is keeping its options open, avoiding a firm commitment to more cuts but signaling concern over slowing growth and employment. Bloomberg reported that one member of the FOMC dissented, arguing for a deeper 50-basis-point cut, with speculation pointing to Trump appointee Stephen Miran.

Market Reactions and Crypto

Interest rate cuts generally reduce bond yields and lower borrowing costs, making riskier assets more appealing. That includes equities, Bitcoin, and especially altcoins. While the September move was already priced in, Powell’s cautious but dovish tone could give digital assets another push.

So far, the impact has been mild. Bitcoin rose 1% over the past 24 hours and 3.2% in the past week, settling at around $17,755 according to CoinMarketCap. Altcoins have shown stronger momentum, climbing between 4% and 5% in the same period.