The Federal Reserve System of the United States decided at the Federal Open Market Committee meeting on October 29, 2025, to lower the key interest rate by 0.25 percentage points — to a range of 3.75-4% per annum. This marks the second consecutive easing of monetary policy by the Fed in recent months.
This is reported by Business • Media
Impact of the Fed’s Decision on Financial and Cryptocurrency Markets
The previous rate cut in September had a positive effect on the dynamics of the stock and cryptocurrency markets. However, this year’s October change was accompanied by an opposite reaction: key crypto assets lost value, with Bitcoin temporarily dropping below the $108,000 mark. The daily liquidation volume in the markets exceeded $825 million.
Analysts attribute this dynamic to comments made by Fed Chair Jerome Powell regarding future monetary policy. In particular, the market was concerned that further easing steps remain in question.
“However, the regulator’s head, Jerome Powell, stated that the next easing of policy remains uncertain.”
The next FOMC meeting is scheduled for December 9-10, 2025. According to CME exchange forecasts, there is over a 70% probability that the Fed will maintain the rate at its current level, while the likelihood of a rate increase is nearly 30%.
Key Points from Jerome Powell’s Speech
During the press conference, Jerome Powell emphasized that the Fed remains focused on price stability and maximum employment. The regulator plans to conclude its quantitative easing program by December 1. Powell noted that inflation remains above the target level of 2%, and inflation expectations have intensified amid the tariff policy of President Donald Trump. According to Powell, the US economy has shown resilient growth due to consumer demand leading up to the shutdown; however, a potential government shutdown could negatively impact economic indicators.
Powell also remarked that the unemployment rate remains low, but the pace of job creation has slowed. Committee members have yet to reach a consensus on the future course of monetary policy — the question of another rate cut remains open. The Fed Chair emphasized that if the labor market stabilizes, the regulator’s focus will shift to core inflation. Under current conditions, further rate cuts appear unlikely, and one reason for easing policy, according to Powell, is the reduction in immigration and the overall employment level.
