The U.S. Federal Reserve made a surprise rate cut of 50 basis points, the largest since 2020, in an effort to prevent hidden dangers in the economy. The rate cut comes after positive news on inflation, but core inflation and slowing job gains indicate underlying pressures. The Fed's decision has initially caused mixed sentiment in the stock market, but markets have ultimately welcomed the rate cut. The crypto market has also turned bullish, with the total market cap increasing and Bitcoin and Ethereum seeing gains. However, concerns arise as the rate cut parallels previous instances that led to economic crashes. The Fed's aggressive rate cut could be a sign that they see risks the market has yet to fully acknowledge. The next few months will be crucial in determining the long-term impact of the rate cut.



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