Federal Reserve official Musalem's recent remarks have provided the market with several clues. He pointed out that the current inflation rate is closer to 3% rather than the 2% target level, but the good news is that a significant decline is expected this year. The labor market is also cooling in an orderly manner, with no signs of losing control.



Regarding growth prospects, he stated that by 2026, the economy is expected to grow at or above its potential growth rate. Recent inflation data is somewhat reassuring, indicating that inflation this year can be expected to continue approaching the 2% target.

But there is a key turning point here — there is not enough reason to loosen policy in the short term. In other words, those hoping for a significant rate cut may be disappointed. For asset markets that rely on a loose policy environment, this means a need to reassess current risk pricing.
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Whale_Whisperervip
· 01-13 16:54
Interest rate cuts shattered dreams, still need to face reality --- Another "stay calm and don't rush" signal, the Fed really knows how to keep people guessing --- The 2% inflation target is still a long way off for us, don't celebrate too early --- Assets relying on loose monetary policy need to be revalued, this wave will require adjustments --- So the current pricing logic needs to be completely overturned? That's a bit difficult --- A cooling labor market is good, but cutting interest rates? Don't even think about it --- No reason for short-term easing, just listen to that and you'll know, we still have to endure --- Wait, is this implying that high interest rates will continue? Damn --- Getting close to 2% inflation and large rate cuts are two different things, don't confuse them --- The asset market needs to wake up, risk pricing is far from being in place
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BetterLuckyThanSmartvip
· 01-13 16:45
The rate cut dream is shattered; the Federal Reserve really isn't giving any face this time. --- Wait, 3% inflation is still called "reassuring"? Why don't I feel it? --- There's no reason to cut rates in the short term... but what about the long term? Do we still have a chance, brothers? --- We won't see growth pick up until 2026. Can the coins I hold still last until then? --- It's all "risk pricing" again. It gives me a headache. Basically, don't expect easing anymore. --- An orderly cooling of the labor market sounds good, but my asset portfolio has long since lost its warmth. --- Feels like this guy is hinting at long-term rate hikes. --- So now it's just hold steady, don't mess around, right? --- Getting inflation close to 2% is a good thing, but we're still far from actual rate cuts. --- The Fed's rhetoric is truly clever—giving hope but not real benefits.
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PoetryOnChainvip
· 01-13 16:45
Wait, Musalem's meaning is that I still have to endure high interest rates... I have to hold on to my position a little longer.
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ContractBugHuntervip
· 01-13 16:34
The dream of rate cuts is shattered, the Federal Reserve still needs to continue hawkish policies --- So we still have to endure high interest rates? Come on --- 3% inflation, why won't this number come down... Wait, will it improve this year? I don't believe it --- It's "not enough reason to ease," I'm tired of this rhetoric. The crypto market still has to remain under pressure --- Only in 2026 can it take off? What should I do now... --- "Orderly cooling" of the labor market sounds comfortable, but with rate cuts nowhere in sight, it's pointless --- Basically, they still want to maintain a high-interest-rate environment, and asset revaluation is definitely coming --- This policy tone clearly hasn't softened; let the market keep dreaming
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LiquidationKingvip
· 01-13 16:31
The interest rate cut dream is shattered, everyone 😤 It's okay, it's okay, let's continue to hodl... there's nothing we can do about it Musallem's words are very clear, guys, don't expect any loosening in the short term, be more realistic Wait, is inflation really going down? Then what reason is there not to cut... oh right, they are just stubborn Asset pricing needs to be recalculated, maybe it's time to redeem some positions It's another "insufficient justification," I can recite the Federal Reserve's rhetoric by heart
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ZkSnarkervip
· 01-13 16:31
actually, here's the thing about fed speak—they're basically saying "inflation's still vibing at 3% lol, but trust us it's coming down" while simultaneously ghosting everyone expecting rate cuts. imagine if your bank told you rates are staying put because reasons. rip to the people who thought 2026 was their golden ticket tbh
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