US Fed cuts interest rates by 0,25 percentage points and projects further adjustments

• Fed cuts interest rate to 4,00% to 4,25%
• Projection indicates two more interest rate cuts in 2025
• Bitcoin falls 1% to $115.627

The Federal Reserve announced its first interest rate cut of 2025 on Wednesday, a 25 basis point cut. The benchmark rate was lowered to a range of 4,00% to 4,25%, in a decision shared by central bank officials. This was the first easing since December of last year.

The move signals a gradual adjustment in the face of the economic slowdown. Newly confirmed Fed Governor Stephen Miran disagreed with the consensus and advocated a more aggressive cut of 0,50 percentage points. Even with the divergence, the median projection among policymakers points to two more reductions throughout the year.

Officials highlighted in a statement that "employment growth has slowed" and that the unemployment rate, currently at 4,3%, rose slightly from the previous month. Despite the increase, the rate remains considered low, prompting the Fed to withdraw its previous characterization of a "solid" labor market.

Monetary policy projections were detailed in the dot plot, which showed division among central bank officials. Nine officials expect three cuts by the end of the year, six project only one, while two others largely disagree: one predicts no cuts and another predicts six. For 2026, the median expectation is one more adjustment.

The chart also provided updates on the economy's performance. Inflation remained at its projected 3,1%, but GDP was revised upward, rising from 1,4% to 1,6%. The unemployment rate projected for the end of the year rose to 4,5%.

The weakening labor market was one of the factors behind the decision. In August, the economy created only 22.000 jobs, in contrast to the robust figures of previous months. This data reinforces the notion that growth is losing momentum amid uncertainty over the current US president's tariff, tax, and immigration policies.

In the markets, Bitcoin was trading at $115.627 at the time of the announcement, down 1% daily.