Federal Reserve Cuts Interest Rates by 25 Basis Points, Ends Quantitative Tightening

Bitcoin MagazineFederal Reserve Cuts Interest Rates by 25 Basis Points, Ends Quantitative Tightening The Federal Reserve cuts its benchmark interest rate by 0.25% today to 3.75%-4% The last time the Federal Reserve cut rates was in September 2025. There This post Federal Reserve Cuts Interest Rates by 25 Basis Points, Ends Quantitative Tightening first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Oct 30, 2025 - 04:10

Bitcoin Magazine

Federal Reserve Cuts Interest Rates by 25 Basis Points, Ends Quantitative Tightening

The Federal Reserve cuts its benchmark interest rate by 0.25% today to 3.75%-4% The last time the Federal Reserve cut rates was in September 2025.

The cut in September was their first rate cut of the year, following a period of rate holds.

In general, the Fed lowers borrowing costs for consumers and businesses, aiming to stimulate spending and investment. At the same time, some feel that a rate cut signals underlying economic weakness.

Yesterday, Bitcoin was trading at $116,000 yesterday but since slumped down to under $111,000 earlier today. Bitcoin’s price slightly jumped to the high $111,000s as the news came out. It is currently trading at $111,470.

Historically, bitcoin responds to monetary‑policy shifts. For example, after the Fed’s emergency cuts in March 2020, Bitcoin plunged nearly 39 % before rebounding strongly.

More recently, when the Fed cut rates in September 2025, Bitcoin’s reaction was muted, suggesting markets may have priced in the move.

Federal Reserve to stop Quantitative Tightening

Chair Powell also said that the central bank is approaching the end of its Quantitative Tightening (QT) program, a move that could provide a boost to risk assets, including bitcoin. The Fed said they will stop QT by December, according to reports.

While Powell has previously flagged that the Fed is nearing this stage, uncertainty from the ongoing government shutdown complicated the outlook. With QT concluding, markets should respond positively.