Fed interest rate cut: stocks and Bitcoin fall – what now for investors?

Fed interest rate cut: stocks and Bitcoin fall – what now for investors?

The US Federal Reserve is cutting interest rates again, for the third time in a row. But Fed Chairman Jerome Powell warns that the future of rate cuts is uncertain as inflation remains stubborn. These rising interest rates have an immediate impact on the markets: stocks, Bitcoin and gold are rapidly losing value. The price of gold fell by around $50 to $2,587, while Bitcoin lost over five percent at times Today.at reports.

The market reaction is overwhelmingly negative. The Dow Jones lost a significant 2.6 percent on Wednesday, alarming analysts. The Swiss stock index SMI also fell by 1.42 percent on Thursday morning. However, the US dollar, which is strengthening against the euro and franc, is developing positively and the yield on ten-year US bonds rose by 10.6 basis points to 4.51 percent. UBS warns that there is a risk that the Fed will not cut interest rates further in March, adding to uncertainty in markets as Statista represents.

Market reactions and interest rate forecasts

A storm is brewing in the markets; Investors are nervous and the mood is anything but optimistic. If inflation remains under control, the Fed could be forced to maintain its interest rate policy, which would have far-reaching consequences for all asset classes. The declines in Bitcoin are particularly striking as many altcoins such as Uniswap have fallen by as much as twelve percent, highlighting the uncertainties in the cryptocurrency market. Given these developments, investors are wondering when and if stabilization will occur, as markets are clearly under pressure while the Fed is acting more cautiously.