On December 18, 2024, the Federal Reserve announced a 0.25% reduction in the federal funds rate, setting the new target range at 4.25%–4.50%. This decision marks the third rate cut this year, following reductions in September and November.
The Fed's move reflects its response to current economic indicators, including a slight uptick in the unemployment rate to 4.2% and steady job growth, with 227,000 jobs added in November.
These factors suggest a cooling labor market, prompting the Fed to adjust rates to support economic activity.
Lower interest rates can stimulate borrowing and investment, potentially boosting both traditional financial markets and the crypto sector. People are now recalibrating their strategies in light of the Fed's latest policy shift.
To understand how the Federal Reserve's interest rate decisions impact you, click below:
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