Federal Reserve Reduces Rates by 25 Basis Points; Bitcoin Hits Record High

The U.S. Federal Reserve, as anticipated by market analysts, has lowered its benchmark fed funds rate by 25 basis points to a range of 4.5%-4.75%. This follows a global trend among central banks to soften monetary policy.

"Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has increased but remains low," according to the press release. "Inflation has progressed towards the Committee's 2% target but remains somewhat elevated."

Fed Chair Jerome Powell addressed public concerns about the consequences of Donald Trump's election victory, stating that the election results have had "no effect" on the Fed's policies in the foreseeable future. This statement alleviated fears of an aggressive monetary policy shift.

Amidst this backdrop, Bitcoin's price surged to $76,951 following Powell's announcement, marking a fresh record high, although it slightly retreated later. The overall CoinDesk 20 Index also performed well, gaining 4.5% as U.S. stock markets reached session highs.

The Fed's decision has decreased the likelihood of a pause in rate hikes during the forthcoming December meeting from 33% to 28%.

Read more: Bitcoin Fed Preview: Powell's Take on 'Trump Tariffs'

Update as of Nov. 7, 21:16 UTC: Includes remarks from the Fed Chair's press conference and current pricing updates.