Latest inflation data could be the perfect opening for Powell to start easing monetary policy. With price pressures finally showing signs of cooling, the Fed has room to maneuver on interest rates. This pivot matters more than people realize—tighter Fed policy has been a headwind for risk assets, and crypto is particularly sensitive to rate expectations. If the central bank shifts toward rate cuts, we could see meaningful capital flow shifts across markets. Watch how the inflation narrative unfolds; it'll likely reshape expectations around future monetary stance and asset valuations.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Latest inflation data could be the perfect opening for Powell to start easing monetary policy. With price pressures finally showing signs of cooling, the Fed has room to maneuver on interest rates. This pivot matters more than people realize—tighter Fed policy has been a headwind for risk assets, and crypto is particularly sensitive to rate expectations. If the central bank shifts toward rate cuts, we could see meaningful capital flow shifts across markets. Watch how the inflation narrative unfolds; it'll likely reshape expectations around future monetary stance and asset valuations.