The U.S. Federal Reserve announced a 25-basis-point rate cut on Wednesday, but crypto prices still slumped.

A lower federal funds rate makes borrowing costs more affordable, stimulating financial activity. Rate cut announcements typically boost the prices of riskier assets.

Neither crypto nor equities followed that script on Wednesday, however. A potential reason? In a speech following the announcement, Fed Chair Jerome Powell struck a more inflation-hawkish tone than expected when discussing the possibility of future cuts.

“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December,” Powell explained. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it. Policy is not on a p

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