Overview

• The Federal Reserve lowered the fed funds rate by 25 basis points to 4.00%–4.25% on Sept. 17, its first reduction in nine months.
• Jerome Powell cautioned that inflation remains somewhat elevated and that job gains have slowed, while the FOMC dot plot left room for two additional cuts in 2025.
• Prediction tools show strong expectations for further easing next month, with the CME FedWatch Tool putting the odds of another 25-basis-point cut near 92%.
• Crypto’s initial reaction was muted and crypto-linked equities were mixed, with major tokens little changed as traders had largely priced in the decision.
• A Bitbank analyst said a Bitcoin retest of $120,000 is within sight as risk-on sentiment lingers, while options desks report traders harvesting premium rather than positioning for a breakout.