The post Federal Reserve’s Rate Cut Fuels Market Debate Amid Inflation Concerns appeared on BitcoinEthereumNews.com.

Key Points: Federal Reserve cuts rates by 25 basis points. Internal Fed debate focuses on balancing inflation and unemployment risks. Crypto markets react with volatility reflecting economic uncertainties. Federal Reserve officials remain divided on interest rate cuts following a 25 basis points reduction at the September 2025 FOMC meeting, reflecting ongoing internal debates about inflation and unemployment. Market reactions vary: moderate rate cut boosts risk assets, heightens caution amid rising inflation, impacts cryptocurrencies like Bitcoin, Ethereum; broader economic implications remain uncertain until Powell’s upcoming address. Fed Rate Cut Spurs Internal and Market Tensions Federal Reserve officials are grappling with decisions on interest rates, with notable differences emerging this week among key figures. Vice Chair Michelle Bowman has raised concerns that the Fed might be lagging in its labor market support, advocating for more aggressive cuts if employment worsens. In contrast, Chicago Fed President Austan Goolsbee advised caution, stating, “With inflation exceeding targets, radical easing isn’t ideal.” These conflicting viewpoints illuminate the complexity of decision-making within the Federal Reserve, as also outlined in the Federal Reserve Monetary Policy Report September 2025. The recent 25 basis point cut to interest rates, now at 4.0%–4.25%, acts as a middle ground between members worried about rising unemployment and those who focus on inflation. As noted in the Federal Reserve FOMC Statement: “In taking this action, the Committee seeks to foster maximum employment and inflation at the rate of 2 percent over the longer run. The Committee remains highly attentive to inflation risks.” Markets responded with volatility, reflecting uncertainty over future policy directions. In the cryptocurrency sphere, the rate cut stirred volatility, particularly for Bitcoin (BTC) and Ethereum (ETH). Historical precedent suggests rate decisions impact crypto values due to USD fluctuations, and this latest move was no exception. Industry projections are cautious as the markets…

---

Filed under: News - @ September 24, 2025 12:23 am