The Federal Reserve Lowers Interest Rates for the Second Consecutive Time Amid Slowing Inflation and Rising Unemployment
The U.S. Federal Reserve, in its Federal Open Market Committee (FOMC) meeting that concluded on Thursday
decided to cut interest rates by 25 basis points,
bringing the upper limit of the federal funds rate to 4.75%, down from 5.00%.
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Interest Rates
This decision was in line with market expectations.
It marks the second consecutive rate cut following a reduction in September,
the first since March 2020. The Federal Reserve based its decision
on recent economic data showing a slowdown in inflation,
nearing the Fed’s target of 2%, and rising U.S. unemployment rates.
Investment Funds
U.S. exchange-traded funds (ETFs) recorded their highest daily inflows in history, led by the IBIT fund.
On November 7, ETFs saw a record $1.38 billion in net inflows,
the highest daily level since their inception, according to SoSoValue data.
BlackRock’s IBIT fund led with $1.12 billion in inflows, accounting for 81% of the total across 11 traded funds.
Fidelity’s FBTC fund ranked second with $190.92 million in inflows
after leading the previous day with $308.8 million.
Other funds included Grayscale Bitcoin Mini Trust, with $20.38 million in inflows,
ARK’s ARKB fund is $17.61 million, and Bitwise’s BITB fund is $13.36 million.
Total trading volume for Bitcoin ETFs on November 7 reached $2.76 billion,
down from the previous day’s $6.07 billion in trades.
Oil
Hurricane Rafael halted a quarter of oil production and 17% of natural gas output in the Gulf of Mexico
The U.S. Bureau of Safety and Environmental Enforcement reported
that more than a quarter of crude oil and about 17% of natural gas production in the Gulf of Mexico
were shut down as a result of the hurricane,
which hit the region on Wednesday, causing evacuations of multiple production and drilling facilities.
On Saturday, 490,241 barrels of oil and 313 million cubic feet of natural gas were halted.
The Gulf of Mexico accounts for 15% of U.S. crude oil production and 2% of its natural gas output.
Hurricane Rafael halted a quarter of oil production and 17% of natural gas output in the Gulf of Mexico.
The Federal Reserve Lowers Interest Rates