【BlockBeats】The recent attitude change of the Federal Reserve has attracted considerable attention. According to reports, Federal Reserve Board member Milan recently stated clearly that the various external pressures and criticisms faced by the Fed will not directly lead to an increase in inflation. More importantly, she reaffirmed this year’s interest rate cut plan — with an expected total reduction of 150 basis points for the year.
This signal is highly significant for the market. If the Fed truly proceeds along this path, it could mean that a rate cut window may open as early as Q1. This is positive for risk assets, including cryptocurrencies — a lower interest rate environment typically encourages funds to flow into high-yield, high-risk asset classes. At the same time, this kind of statement from officials regarding inflation also reflects the decision-makers’ confidence in the current price pressures, further stabilizing market expectations for future policy directions.
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Federal Reserve officials' attitude shifts: a 150 basis point rate cut this year becomes the consensus, easing inflation concerns
【BlockBeats】The recent attitude change of the Federal Reserve has attracted considerable attention. According to reports, Federal Reserve Board member Milan recently stated clearly that the various external pressures and criticisms faced by the Fed will not directly lead to an increase in inflation. More importantly, she reaffirmed this year’s interest rate cut plan — with an expected total reduction of 150 basis points for the year.
This signal is highly significant for the market. If the Fed truly proceeds along this path, it could mean that a rate cut window may open as early as Q1. This is positive for risk assets, including cryptocurrencies — a lower interest rate environment typically encourages funds to flow into high-yield, high-risk asset classes. At the same time, this kind of statement from officials regarding inflation also reflects the decision-makers’ confidence in the current price pressures, further stabilizing market expectations for future policy directions.