Fed Cuts Rates 0.25%, Halts QT as Crypto Market Faces $795M Liquidations
The US Federal Reserve cut interest rates by 25 basis points on Oct. 29, while announcing it will stop shrinking its balance sheet. The decision triggered significant volatility in crypto markets, with Bitcoin dropping and traders recording hundreds of millions in liquidations.
The rate cut lowered the federal funds rate to a range of 3.75%-4.00%, according to Reuters. The decision passed with a 10-2 vote, drawing dissents from Governor Stephen Miran, who favored a larger cut, and Kansas City Fed President Jeffrey Schmid, who opposed any reduction. Treasury Secretary Scott Bessent recently confirmed five finalists to replace Powell in a shortlist for the next Federal Reserve Chair, whose term ends in 2025.
The Fed announced it…
