Fed implemented a "cut in risk management": here what Powell said

By Hannah Pérez

The president of the FED, Jerome Powell, described the cut of 25 basic points today as a “risk management cut.” Bank officials project two other cuts this 2025. Meanwhile, Bitcoin remained static.

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The US Federal Reserve today announced an expected rate cut of 25 basic points.
The president of the FED, Jerome Powell, identified him as a “risk management cut.”
Next, a summary of the president’s statements, including projections.
The Fed is expected to pronounce two other cuts this year, while BTC remains static.

As expected, the Federal Reserve of the USA

The decision, which was approved by the majority of the members of the Federal Open Market Committee (FOMC), reflecting a greater internal unit despite political tensions, was followed by the comments of the president of the Fed, Jerome Powell.

During the press conference, Powell identified the cut as a “Risk management cut”emphasizing that it is a precautionary measure to balance the current economic risks, according to media such as CNBC, Reuters and CNN.

“You can think about this, in a way, as a cut in risk management“Powell said. He added that a panorama has emerged”Very different”Risk as the labor market has begun to cool against threats in the front of inflation.

Despite the insistence of a cut by President Donald Trump, the Central Bank had stable interest rates since December 2024, since inflation has remained above the objective of the Fed of 2% per year.

Powell had also expressed concern that tariffs imposed by the Trump administration could cause a price increase, arguing in favor of a position of waiting and seeing by the Fed.

Jerome Powell’s statements

In his comments today, Powell stressed that the US economy shows resilience, but with signals of weakening in the labor market, which stood out as a key factor behind the decision of the fees. This comment contrasted with the previous opinion of July that the labor market was “solid“

The Fed leader continued to mention that GDP growth has slowed down and the labor market has been softened since April, which has reduced the risks of higher and more persistent inflation.

He cited growing concerns about employment health, noting that “In the short term, the risks for inflation are upward, while the risks to employment are down, a challenging situation for monetary policy formulators“This reflects a change in the priorities of the Fed, going from focusing mainly on inflation towards protecting maximum employment.

Powell also addressed the impact of Trump’s policies, such as tariffs, indicating that until now they have been mainly absorbed by importing companies, without causing serious impact for consumers. However, he warned about future uncertainties due to changes in taxes, trade and immigration, which could alter the balance of risks between inflation and employment.

About inflation and the labor market

On inflation, Powell said that some more severe concerns have decreased: “Actually, since April, for me, the risks of a higher and persistent inflation have probably become a bit minor, and that is partly because the labor market has softened and GDP growth has slowed down“

Regarding the labor market, he reiterated that the main risk is now employment, with an approach to preventing greater deterioration, although the situation is not critical yet.

Future projections: more cuts in 2025

Powell referred to the updated projections graphic of the FOMC members, which now anticipates two additional rate cuts before the closing of 2025 (probably in October and December). This is an upward adjustment with respect to June projections, which only foresaw two cuts for the whole year, and a reduction with respect to market expectations of up to five cuts in 2025-2026.

By 2026, officials project only an additional cut, maintaining a gradual approach. The projections for unemployment and inflation this year remain unchanged with respect to June, which indicates that the Fed sees the economy in a solid but vulnerable position.

Powell emphasized that the Federal Reserve will proceed “carefully“, Evaluating incoming data such as employment and inflation, and that there is no pre -established path:“The economy of the future remains in the air“

Indirectly about political tension

Trump has repeatedly requested feat cuts since he assumed the position in January, and has even raised the idea of saying goodbye to President Powell of his position as head of the Fed. In a publication in Social truth On Monday, Trump had said that the Federal Reserve must cut the fees “more than [Powell] I had in mind“

To this recently joined Trump’s attempts to remove Governor Lisa Cook, which has generated fears about the independence of Banco Centra.

During the statements on Wednesday, Powell indirectly mentioned these political tensions, but avoided direct confrontations, when He underlined the independence of the Fed and its commitment to its dual objectives of maximum employment and price stability, despite external pressures for more aggressive cuts.

Crypto market barely reacts

The lowest interest rates often make traditional investments less attractive, which leads many investors to seek greater returns through risk assets such as cryptocurrencies. Several analysts hope that Wednesday’s feat in Wednesday will inject more liquidity into the markets and lead to a greater volume of operations in assets such as Bitcoin, Ether and others.

However, despite this favorable perspective, the market remained static immediately after the news. Bitcoin (BTC), which for hours in the morning had resumed four -week maximums over USD $ 117,000, was quickly reversed below USD $ 115,500 shortly after the Fed decision.

The main cryptocurrencies in general registered a similar action, with little variation in the last 24 hours. Ether (Eth) is negotiated with a very modest gain of 0.6% to USD $ 4,530 at the time of edition, according to Coingcko.

Several analysts agree that the market could resume the rally in the last quarter of the year, when September –historically bassist and with important macro developments– Remove back to October –In contrast, historically bullish.

BTC changes hands around USD $ 116,000, 0.7% lower in 24 hours and a correction of 6.5% from the maximum of USD $ 124,000 conquered last month, while observers projections such as Bitwise and Standard Chartered They point to an unprecedented rupture of USD $ 200,000 before the closing of 2025.

Article written with the help of AI, edited by Diariobitcoin

Image generated with AI tool, under free use license

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