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Federal Reserve Meeting Major Highlights and Key Points

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The Federal Reserve lowered the target range for the federal funds rate by 50 basis points on Wednesday. This action brings the rate to a new range of 4.75% to 5.00%, which is the first decline in four years. The decision is in line with the Fed’s policy of ensuring that inflation is kept in check without jeopardising the stability of the economy.

Federal Reserve’s Justification for Rate Cut

The Federal Reserve announced the rate cut citing recent economic figures that pointed to growth at a steady pace, but with some moderation. Although job creation has slowed down and the unemployment rate has risen marginally, inflation is slowly moving towards the Fed’s target of 2%.

The central bank considers the outlook for the economy as still cloudy however, it views the risks to achievement of the dual mandate as evenly split.

Chair Jerome Powell noted that this decision is a small step to fine-tune policy to help maintain economic conditions. He told the market that the Fed is still determined to meet its employment and inflation targets. In addition, the Fed is likely to go on reviewing the data flow and may change the course of its policy should new economic circumstances occur.

Powell’s Perspective on the Economic Landscape

Jerome Powell noted that the US economy is healthy, and the economic growth is expected to remain strong. Inflation is gradually coming down while the labor market remains robust even as job creation slows down. 

The Fed Chair emphasized that the Fed’s goal is to return inflation to its target level without causing a sharp increase in unemployment, which is typical for disinflation.

The head of the central bank also added that the low interest rate environment that has been observed in the previous years is not expected to continue in the future. Powell admitted that the neutral rate – the interest rate that does not stimulate or hinder economic growth– could be much higher now but it is still unclear just how high it is. This shift is a break from previous monetary policies that have involved extended periods of near-zero interest rates.

Reactions to the Federal Reserve’s Decision

However, the rate cut was not supported by all members of the Federal Open Market Committee (FOMC) as the Fed Governor Michelle Bowman voted for a 25 basis point cut. Nevertheless, the Fed Chair stressed that there was consensus within the committee regarding the need for policy change. He stressed that the decision would be taken from one meeting to another, considering the current and forecasted trends.

Some of the investors have been supportive but many of them have raised their concerns that the 50 basis points cut was too much. Financial markets expressed their reaction with keen interest with the S&P 500 and the Dow Jones setting new highs after the announcement. However, concerns over the size and the time of the cut diminished the rally, as some think that the economy is still quite healthy and did not necessitate such a deep cut.

Moving forward, the Federal Reserve’s Summary of Economic Projections (SEP) indicates that interest rates may fall even more in 2025 and 2026. According to the SEP, rates could be at 4.25% to 4.5% by the end of this year with more possible cuts to follow. According to its current forecasts, the central bank expects interest rates to reach 2.9% by 2026, which may suggest a further softening of monetary policy.

While the Fed decided to decrease rates, Jerome Powell noted that this does not mean that the same trend will persist in the future. He emphasized that each decision will be made based on current and future economic conditions and information. Thus, the market participants should not anticipate the central bank to deliver similar decisions at the subsequent meetings.

Labor Market and Inflation Considerations

The Federal Reserve has also paid keen interest to the labor market leading to this rate cut. As the Fed Chair pointed out, although job creation has decelerated in the past few months, the labor market is still very close to full capacity. However, the Fed is keeping a close eye on these trends, as a sharp decline in job growth could be indicative of an economic decline.

Concurrently, inflation remains the primary concern for the Federal Open Market Committee (FOMC). The Fed Chair stated that, according to the PCE price index, inflation is projected to decline to 2.2% in August from 2.5% in July. This action takes inflation rate nearer to the Fed’s 2% target, thus strengthening the Fed’s stance on the policy adjustment.

Despite the positive signs, some experts worry that the Fed might be acting too quickly. They argue that the U.S. economy remains robust, with unemployment still relatively low, and that further easing could spark unnecessary risks, such as asset bubbles or overheating in certain sectors. Nevertheless, Jerome Powell maintained that the Fed’s approach has been patient and that its decision to cut rates reflects confidence in inflation’s steady decline.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Japan Set To Classify Cryptocurrencies As Financial Products, Here’s All

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Cryptocurrency investors in Japan are bracing for impact following a plan to reclassify digital assets as financial products. While the plan has elicited excitement from cryptocurrency enthusiasts in the Far East, the ambitious plan will have to scale several legislative hurdles.

Japan Targets Reclassification Of Cryptocurrencies As Financial Products

According to a report by Nikkei, Japan’s Financial Services Agency (FSA) is inching toward classifying cryptocurrencies as financial products. Per the report, the FSA intends to achieve the reclassification via an amendment to the Financial Instruments and Exchange Act.

Currently, digital assets in Japan are considered crypto assets conferred with property rights and seen as payment means. Under the FSA’s plans, cryptocurrencies in Japan will be treated as financial products in the same manner as traditional financial products.

The FSA says it will adopt a slow and steady approach toward the reclassification, carrying out “a private expert study group” to test the waters. If everything goes according to plan, the FSA will submit the amended bill to Parliament in early 2026.

The classification of cryptocurrencies as financial products will have far-reaching consequences for the local ecosystem. Experts say treating cryptocurrencies as financial products will bring Japan closer to a crypto ETF launch amid a changing regulatory landscape.

Furthermore, the move may lower current cryptocurrency taxation for local investors since existing capital market rules will apply to the asset class.

A Fresh Bill For Crypto Insider Trading Is Underway

Apart from the reclassification, the FSA disclosed plans for new legislation against insider trading. The move flows treating cryptocurrencies as financial products and will strengthen existing investor protection rules.

“It is a direction to establish a new insider trading regulation that prohibits trading based on unpublished internal information,” said the FSA. “We will develop laws to prevent unfair transactions.”

However, Japan’s cryptocurrency scene is heating up to a boil, driven by local and international players. Last week, stablecoin issuer Circle secured approval from the FSA for USDC with top exchanges set to list the stablecoin.

Japan’s Metaplanet has tapped Eric Trump to join its Strategic Board of Advisors as it continues to load up Bitcoin.

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Aliyu Pokima

Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Kentucky Governor Signs Off On ‘Bitcoin Rights’ Bill, Strengthening Crypto Protections

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In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.

Bitcoin Rights Bill Comes Into Effect

Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.

In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:

The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.

The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.

The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.

On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.

Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.

Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.

Renewed Optimism Under Trump Administration

Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.

Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.

The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.

bitcoin
BTC trades at $87,399 on the daily chart | Source: BTCUSDT on TradingView.com

Featured Image from Unsplash.com, chart from TradingView.com

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US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.

US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges

The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.

Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.

Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.

This Is A Developing News, Please Check Back For More

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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