The recently released minutes from the Federal Reserve meeting have caused significant fluctuations in the financial markets, particularly having a major impact on the encryption currency sector. Previously, the market widely anticipated a rate cut in September, but this expectation is now facing uncertainty.
The meeting minutes revealed divisions within the Federal Reserve regarding inflation and employment issues. Notably, the July meeting saw the first dissenting votes from two board members since 1993, a rare occurrence that attracted widespread attention. While some members noted signs that the labor market may weaken, the majority of committee members still believed that inflation risks were more concerning. They specifically pointed out that current tariff policies could lead to inflation exceeding the 2% target in the long term.
In order to effectively control inflation, the Federal Reserve may maintain a high interest rate policy for a longer period of time. This is not good news for the cryptocurrency market, as a high interest rate environment increases the cost of funds and reduces the amount of capital flowing into high-risk assets. After the release of the meeting minutes, market expectations for a rate cut in September sharply declined from over 90% to below 80%.
Currently, the market's focus has shifted to the speech that Federal Reserve Chairman Powell is about to deliver at the Jackson Hole central bank annual meeting. This will be his last speech at this important event during his term, making it highly anticipated. Looking back at previous years, Powell has released important signals on this occasion: in 2018, he emphasized balancing dual risks, and in 2022, he expressed a firm determination to combat inflation.
In this speech, the market expects to gain clues from Powell's remarks regarding whether there will be a rate cut in September, the future direction of interest rates, and how to balance key issues such as inflation and employment. If Powell maintains a hawkish stance and continues to emphasize inflation risks, the likelihood of a rate cut in September will be significantly reduced, which may lead to continued pressure on the cryptocurrency market in the short term. Conversely, if his language softens and shows concern for the job market, then hopes for a rate cut in September still exist. In any case, this speech will have a profound impact on the financial markets, especially in the field of cryptocurrency.
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BankruptWorker
· 18h ago
It's time to eat plain flour again.
View OriginalReply0
RugDocScientist
· 18h ago
Short-term hedging as the main focus
View OriginalReply0
AirdropHuntress
· 09-02 19:01
Market fluctuations require Coin Hoarding.
View OriginalReply0
ImpermanentPhobia
· 09-02 09:35
The bleak market has become the norm.
View OriginalReply0
LayoffMiner
· 09-01 09:50
Interest rate cuts are suspended, lying flat awaits reversal.
View OriginalReply0
GateUser-9ad11037
· 09-01 09:47
The expected market position is likely to collapse.
The recently released minutes from the Federal Reserve meeting have caused significant fluctuations in the financial markets, particularly having a major impact on the encryption currency sector. Previously, the market widely anticipated a rate cut in September, but this expectation is now facing uncertainty.
The meeting minutes revealed divisions within the Federal Reserve regarding inflation and employment issues. Notably, the July meeting saw the first dissenting votes from two board members since 1993, a rare occurrence that attracted widespread attention. While some members noted signs that the labor market may weaken, the majority of committee members still believed that inflation risks were more concerning. They specifically pointed out that current tariff policies could lead to inflation exceeding the 2% target in the long term.
In order to effectively control inflation, the Federal Reserve may maintain a high interest rate policy for a longer period of time. This is not good news for the cryptocurrency market, as a high interest rate environment increases the cost of funds and reduces the amount of capital flowing into high-risk assets. After the release of the meeting minutes, market expectations for a rate cut in September sharply declined from over 90% to below 80%.
Currently, the market's focus has shifted to the speech that Federal Reserve Chairman Powell is about to deliver at the Jackson Hole central bank annual meeting. This will be his last speech at this important event during his term, making it highly anticipated. Looking back at previous years, Powell has released important signals on this occasion: in 2018, he emphasized balancing dual risks, and in 2022, he expressed a firm determination to combat inflation.
In this speech, the market expects to gain clues from Powell's remarks regarding whether there will be a rate cut in September, the future direction of interest rates, and how to balance key issues such as inflation and employment. If Powell maintains a hawkish stance and continues to emphasize inflation risks, the likelihood of a rate cut in September will be significantly reduced, which may lead to continued pressure on the cryptocurrency market in the short term. Conversely, if his language softens and shows concern for the job market, then hopes for a rate cut in September still exist. In any case, this speech will have a profound impact on the financial markets, especially in the field of cryptocurrency.