Federal Reserve releases 2026 economic outlook: no interest rate cuts planned, inflation peaking becomes key

LiquidityWitch · 2026-01-12T23:40:10+00:00

New York Fed President Williams is optimistic about the economic outlook for 2026 but does not see a need to cut interest rates in the short term. He believes that current monetary policy is conducive to stabilizing employment and expects inflation to peak in the first half of the year. For the crypto market, this means liquidity remains stable, but short-term rate cuts to stimulate the market are unlikely.

LiquidityWitch

2026-01-12 23:40:10

Abstract generation in progress

【Crypto World】The President of the New York Federal Reserve, Williams, has recently spoken, bringing some key economic expectations to the market. He is relatively optimistic about the US economic outlook for 2026, but his stance is very clear—there is no need to cut interest rates in the short term.

Specifically, Williams believes that the current monetary policy environment is already very favorable. This policy tone helps stabilize the employment market while gradually pushing inflation back to the long-term target of 2%. From an economic data perspective, he expects this year’s GDP growth to be between 2.5% and 2.75%—not fast, but relatively steady. The unemployment rate is also expected to remain relatively stable.

What is more noteworthy is the inflation trend. Williams predicts that inflationary pressures will peak in the first half of the year, estimated to be between 2.75% and 3%, then gradually decline. By the annual average level, inflation may fall to around 2.5%—a significant improvement over the current high point.

What does this mean for crypto market participants? The Federal Reserve maintaining its current policy stance means liquidity conditions are relatively stable, but it also indicates that short-term expectations for rate cuts to stimulate the market should not be relied upon. The expectation that inflation will peak may instead create room for subsequent policy adjustments.

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down_only_larry

· 21h ago

No rate cuts? Then how are we supposed to play in the crypto world? We'll have to rely on ourselves now. Inflation has truly peaked; where will the funds flow to then? That's the key. No short-term rate cuts, huh? Then let's just keep getting trapped, everyone. Get used to it. Prepare before 2026; just listen to Williams' words and take it with a grain of salt. So it's just stable growth, slow inflation, no surprises? Boring to death.

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MiningDisasterSurvivor

· 01-15 01:16

No rate cuts in the short term, BTC has to rely on itself again. I'm tired of this rhetoric; every time they say inflation has peaked, but what happens? They just continue to stick to high interest rates. In crypto, liquidity is everything. Without water flowing downward, no matter how much technical narrative there is, it's useless. It was the same during the 2018 mining crisis—one phrase "policy stability" and the coin price was halved.

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GamefiGreenie

· 01-14 09:28

No rate cuts? Then the crypto world still has to endure. If inflation peaks in the first half of the year, it's all over, right?

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MeltdownSurvivalist

· 01-13 00:10

Why haven't they cut interest rates yet? The Federal Reserve really can't hold on anymore --- Inflation peaked? I think it hasn't peaked; it all depends on how BTC moves --- So now we still have to tough it out, got it --- 2.5% inflation? Sounds good, but the temperature in the crypto world is completely different --- No interest rate cut plan? Then what do I do with my short positions... --- Stable? Forget it, I just want rate cuts, rate cuts, and more rate cuts --- If you ask me, these expectations are pure nonsense; the market has already priced it in --- Another year of endless waiting, I'm really exhausted

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GasFeePhobia

· 01-13 00:09

No rate cuts in sight; hitting the inflation peak is the key. The crypto market still has to endure this wave.

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SellLowExpert

· 01-13 00:07

No rate cuts? Then what about my short positions... It sounds like inflation has peaked and prices are about to fall.

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CommunitySlacker

· 01-13 00:06

No rate cut? Then what does this rebound in the crypto market mean... --- Starting to sound hawkish again, saying good news is actually bad news, just listen. --- Inflation peaked? Why do I feel like my wallet is still hitting rock bottom? --- 2.5% inflation back to 2%? Easy to say, when will we be able to breathe a sigh of relief here? --- So it's still about hodling, the Federal Reserve's attitude just won't change. --- Waiting until 2026? I'm afraid the crypto market will have already gone through multiple cycles by then. --- Be cautious, cautious every day, but if you're cautious, no one makes money. --- Nice expectations, but what about reality? Everyone who bought now is just waiting to be trapped.

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MissedTheBoat

· 01-12 23:43

Interest rate cuts are still a distant dream... The crypto market will have to continue sideways trading Listen to this logic, that inflation peaking means interest rate cuts? The Federal Reserve is dreaming 2.5 to 2.75 growth rate... Basically, the economy is testing the brink of a hard landing, how can the coin price go up? Wait, do they really think inflation can drop to 2.5 this year? Why do I find that so hard to believe? Without expectations of rate cuts, there is no liquidity, and Bitcoin's performance won't improve in the short term This move is just to drag things out until 2026, by then we've already been wiped out Speaking of which, how strong must the psychological resilience be for those entering the market now?

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WhaleInTraining

· 01-12 23:42

No rate cut? Then just keep holding on, the crypto world has long been used to it. Heard the saying that inflation has peaked several times, but this time it feels a bit more credible. A 2.5% rollback? Take it slow, we’re not in a hurry anyway. --- With a rate cut still nowhere in sight, this is not good news for on-chain liquidity. --- It's "relatively stable" again, which translates to still needing to tighten further. --- Let's see what they say, anyway the coins will follow their own path. --- If inflation can't be brought down, the Federal Reserve will eventually have to loosen policy, and that will be interesting.

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