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In an economy where inflation continues to worsen, the Federal Reserve’s recent decision is a sign of hope for consumers. 

The Federal Open Market Committee (FOMC), for the first time since the Covid pandemic, decided to lower the target range for the federal funds rate by a half percentage point to 4.75% to 5%.

The reason behind the rate cuts was attributed to indicators suggesting that the economic activity has “continued to expand at a solid pace.” Although the job gains have slowed, the unemployment rate has moved up but still remains “low,” according to FOMC Sept. 18 meeting notes. 

A target of maximum employment and a 2 percent inflation rate over the long term has been set. There is now increased confidence that inflation is moving sustainably towards this goal.

The risks to achieving employment and inflation objectives are assessed as balanced. However, the economic outlook remains uncertain, and there is close monitoring of potential risks to both sides of the dual mandate.

Additionally, the Committee stated that incoming information for the economic outlook will continue to be monitored.” 

According to the meeting notes, it states:

“The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals.”

Over the span of 24-hours, cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) saw massive liquidations in the market, according to the data from Coinglass. Approximately $75.18 million was liquidated from BTC. Meanwhile, ETH recorded a liquidation of $35.84 million. 

Despite the liquidations in the market, CoinMarketCap’s data claims there is an uptick in the market. BTC has crossed the $62,000 barrier after experiencing a 2.90% spike in 24 hours. On the other hand, Ethereum is trading $2,416 after witnessing a 4.16% surge in 24 hours at the time of writing.