Bitcoin surged and then fell back below $91,000. After the Fed cut interest rates by 1 basis point, what did Powell say?

Fed Chair Powell announces a 1 basis point rate cut, Bitcoin temporarily surges to $94,000 before selling pressure emerges, sparking another fierce battle between bulls and bears.
(Background recap: The Fed’s 1 basis point rate cut is in line with expectations! The dot plot indicates only a 1 basis point cut in 2026, Bitcoin and Ethereum fluctuate wildly, U.S. stocks show intra-day gains)
(Additional background: The printing press is running again! The Federal Reserve launches the “Reserve Management Purchase Program,” buying $40 billion worth of short-term government bonds within 30 days starting from 12/12)

The U.S. Federal Open Market Committee (FOMC) concluded its two-day meeting early today (11), with Powell announcing as expected a 25 basis point (1 basis point) decrease in the federal funds rate to 3.50%–3.75%.

After the announcement, Bitcoin briefly surged to $94,000 but then selling pressure appeared, leaving a long upper shadow on BTC. At the time of writing, it temporarily dipped below $91,000, currently at $91,062.

!Screenshot 2025-12-11 09:32:35 | CoinDesk - Most Influential Blockchain News Media

Other top ten tokens showed similar movements to Bitcoin, temporarily rising after the rate cut news, then reversing downward.

!Screenshot 2025-12-11 09:38:50 | CoinDesk - Most Influential Blockchain News Media

Summary of Powell’s Press Conference Highlights

Federal Reserve Chair Jerome Powell reiterated in the press conference that although inflation has significantly declined, it remains above the 2% target, and recent progress needs to be continuously monitored; the labor market is cooling, but more slowly than expected… overall, still considered steady.

In summary, Powell repeatedly emphasized that the Fed is “in a good place to wait for more data,” virtually signaling the end of the policy recalibration phase for 2025. Future actions will depend entirely on economic data rather than preset paths.

In response, the so-called “mouthpiece” of the Fed, The Wall Street Journal reporter Nick Timiraos, also summarized the four key points of Powell’s press conference in real-time on X platform:

2. Powell almost declared that the “policy recalibration phase is complete”— they are now “in a good position to observe and wait.”
3. He attributed internal committee disagreements to an abnormal tension between the dual mandates (employment and inflation) and acknowledged both sides’ viewpoints as reasonable.
4. He unexpectedly pointed out that employment growth might appear negative due to statistical measurement issues, stating: “The gradual cooling of the labor market continues, just slightly slower than expected,” which reduces concerns about inflation in the service sector.
5. Even though interest rates are closer to neutral levels, rate hikes are not a baseline scenario for anyone. Currently, members’ opinions range from “done for now” to “further rate cuts needed,” but no one expects rate hikes as the main outlook.

Key takeaways from Powell’s presser:

• Powell more or less declared the recalibration phase complete—they’re now “well positioned to wait.”

• He blamed committee divide on the unusual tension in the dual mandate and validated both sides of the debate.

• He made a surprisingly…

— Nick Timiraos (@NickTimiraos) December 10, 2025

Analyst interpretation: No clear hawkish signals

Regarding Powell’s remarks, analyst Anna Wong pointed out that although the dot plot shows only one rate cut in 2026, the overall policy statement and economic forecasts remain dovish. The forecast for 2025 economic growth has been significantly revised upward, inflation path lowered, and the reserve management purchase plan announced.

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