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Fed Cuts Interest Rates by 50 Basis Points, Bitcoin Briefly Hits $61K

Author: Content Editor
The U.S. Federal Reserve has cut its benchmark fed funds rate by 50 basis points to 4.75%-5%, the first rate cut in four years. The decision was driven by expectations of further rate cuts in the next two Federal Open Market Committee meetings, with a median benchmark rate of 4.4% projected by year-end. Following the announcement, the price of bitcoin briefly surged 1.2% before stabilizing, while U.S. equities also saw gains. Market expectations were divided on the size of the rate cut, with a 60% probability of a 50 bps cut. Some experts have warned that the rate cuts could lead to market crashes due to narrowing borrowing rate differentials.

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