The US Federal Reserve lowers the rate for the first time in a year: Bitcoin rises to $117,900

On September 17, 2025, a meeting of the US Federal Open Market Committee (FOMC) took place. For the first time since last December, the regulator lowered the interest rate, setting it in the range of 4–4.25%.

The news impacted the crypto market: Bitcoin rose to $117,900 before correcting. Analysts note that in the near term, markets will be subject to high volatility, but in the long term, they predict growth.

The next FOMC meeting is scheduled for October 28–29. According to CME, the probability of maintaining the rate at the current level is estimated at 12.3%, and the probability of a new reduction by 25 basis points is 87.7%.

After the meeting, Federal Reserve Chairman Jerome Powell held a press conference. He noted that the US economy shows signs of slowing down:

• GDP growth in the first half of the year was 1.5%, which is below last year’s figures;
• consumer spending has decreased, and activity in the housing sector remains weak;
• the unemployment rate in August rose to 4.3%, and the growth of new jobs slowed to 29,000 per month;
• meanwhile, wages continue to grow at a moderate pace, outpacing inflation;
• inflation on goods accelerated, which pulled up the overall index;
• short-term inflation expectations have risen, but long-term ones remain near the target level of 2%.

Powell emphasized that the proposal to lower the rate by 50 points did not receive broad support. According to him, such a step is applicable only in conditions requiring a sharp policy change, and currently, the Fed considers mitigating labor market risks a priority.

Answering press questions, the Fed chairman refused to comment on the court case of committee member Lisa Cook, the first African American in the FOMC, appointed during Joe Biden’s presidency.