The Federal Reserve cuts interest rates by 25 basis points as expected; the dot plot shows only one rate cut next year, with future decisions likely to depend on labor market data.

BlockBeats News, on December 11, the Federal Reserve announced a 25 basis point rate cut at 3:00 a.m. Beijing time today, lowering the benchmark interest rate to 3.50%-3.75%. This marks the third consecutive meeting with a rate cut, in line with market expectations, and brings the total rate cuts for the year to 75 basis points.

The Federal Reserve's dot plot forecasts indicate a 25 basis point rate cut each in 2026 and 2027.

"Fed Whisperer" Nick Timiraos wrote in his latest article that Federal Reserve officials have cut rates for the third consecutive meeting, but there is unusual disagreement within the Fed over whether inflation or the job market should be the bigger concern. As a result, officials have signaled a low willingness to continue cutting rates.

In addition, Federal Reserve Chairman Jerome Powell stated in his speech that the labor market appears to be gradually cooling, while inflation remains somewhat elevated. The risks to inflation are tilted to the upside. September labor market data showed a slight increase in the unemployment rate and a significant slowdown in job growth. Labor demand has clearly slowed, vitality has weakened, and there is slight softness.

Goldman Sachs analyst Kay Haigh stated that the Federal Reserve has reached the end of "preemptive rate cuts." She believes: "The next responsibility lies with labor market data, which must weaken further to justify additional near-term easing policies."

After Powell's speech, bitcoin briefly surged above $94,000 before continuously retreating. As of press time, it was quoted at $91,918.