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The US Federal Reserve yesterday announced a rate cut of 0.25%, as expected. In the press conference organised to declare the rate cut, Fed Chairman Jerome Powell defended the decision, portraying it as an attempt to achieve a more balanced economic position. However, he revealed that the organisation would adopt a cautious approach while considering further rate cuts. Yesterday, both the US stock market and the cryptocurrency market suffered severe drops. US Fed Rate Cut & Inflation Goals: What You Should Know Yesterday, the US Fed Fund interest rate was brought down to 4.5%. It was the third major correction this year. Initially, on September 18, it was reduced to 5%. On November 7, it was lowered for the second time to 4.75%. In the press conference, Powell emphasised the commitment of the organisation to support the economy and the job market in the country. However, highlighting that the organisation has not decided on a strict plan for rate changes, he asserted the possibility of a further rate cut depends on three key factors: new economic data, the outlook for the economy, and risks to the economy and inflation. At the start of this year, the US inflation rate was at 3.1%. It touched a yearly peak of 3.5% in March. Notably, between March and September, it had declined steadily. In September, it dropped to a yearly low of 2.4%. However, since then, the rate has increased consistently. In November, it reached 2.7%. Also Read : Metaplanet Stock Debuts on OTCQX: A New Era for Bitcoin Strategy in the U.S. , Market Reactions: Stocks and Crypto Plunge On December 18, the day when the interest cut was officially announced by the US Fed, the crypto market declined by approximately 0.58%. At the beginning of yesterday, the price…