50bps Rate Drop

The U.S. Federal Reserve has cut interest rates by 50bps to 5.00%. Here’s what you need to know:

⦿ Markets expected a 25bps cut, but a 50bps cut happened, causing both traditional and crypto markets to react with sharp growth.

⦿ The Fed is confident that inflation will continue to fall and unemployment will rise, driving this larger rate cut. Despite this, the Fed doesn’t foresee major economic issues.

⦿ This was the first rate cut in nearly four years.

⦿ Consumers can expect reduced borrowing costs, making things like mortgages more affordable.

⦿ Risk assets, like stocks and crypto, may become more attractive as high-yield money market funds may offer lower returns going forward.

This period could mark the start of a rebound for altcoins, making our index-based strategies, such as Long Only and Meta Long Only, particularly attractive right now.