U.S. National Economic Council Director Hassett (Kevin Hassett) has recently publicly attacked the hawkish faction inside the Federal Reserve, strongly criticizing officials—including Barr, Collins, and Musalem—who support further rate hikes. Hassett said that core inflation is now approaching the 2% target range, yet some Fed officials who were not appointed by Trump still send aggressive tightening signals and even plan to raise rates again within the year. He argued that their policy logic is not only unconvincing but also shows a highly politicized tendency, calling for the Fed’s substantive independence to be rebuilt.
From a technical and macro perspective, the White House economic think tank’s direct pressure is offsetting the hawkish expectations among 16 Fed officials in the latest economic projections for another rate hike within the year. Markets appear to be seeking adjustments for overly tight policy aimed at ultimately bringing inflation under control. In practice, the policy-level tug-of-war effectively shuts the ceiling on any further disorderly rise in interest rates, building a solid floor for liquidity expectations.
In traditional financial markets, upward movement in the short-end of the U.S. Treasury yield curve has been resisted, while the U.S. Dollar Index shows signs of momentum exhaustion around a key resistance level. The administration’s strong demands for low interest rates and economic expansion have effectively suppressed the risk of unbridled long-term borrowing costs. After testing key support levels, risk assets such as U.S. stocks have demonstrated strong downside resilience, and the overall market is now simmering with a potential bullish repair of moving averages.
For the crypto market, the marginal dulling of macro tightening expectations is an excellent liquidity-bullish catalyst. With <$BTC > maintaining a high-range box-like consolidation and forming a structure of higher lows (HL), intensifying policy wrangling will accelerate off-exchange capital’s search for allocations to inflation-hedging and decentralized assets. If a liquidity inflection point is confirmed, upward momentum could directly drive tokens to break through the key resistance band above.
#Fed #InterestRates #MacroEconomics
From a technical and macro perspective, the White House economic think tank’s direct pressure is offsetting the hawkish expectations among 16 Fed officials in the latest economic projections for another rate hike within the year. Markets appear to be seeking adjustments for overly tight policy aimed at ultimately bringing inflation under control. In practice, the policy-level tug-of-war effectively shuts the ceiling on any further disorderly rise in interest rates, building a solid floor for liquidity expectations.
In traditional financial markets, upward movement in the short-end of the U.S. Treasury yield curve has been resisted, while the U.S. Dollar Index shows signs of momentum exhaustion around a key resistance level. The administration’s strong demands for low interest rates and economic expansion have effectively suppressed the risk of unbridled long-term borrowing costs. After testing key support levels, risk assets such as U.S. stocks have demonstrated strong downside resilience, and the overall market is now simmering with a potential bullish repair of moving averages.
For the crypto market, the marginal dulling of macro tightening expectations is an excellent liquidity-bullish catalyst. With <$BTC > maintaining a high-range box-like consolidation and forming a structure of higher lows (HL), intensifying policy wrangling will accelerate off-exchange capital’s search for allocations to inflation-hedging and decentralized assets. If a liquidity inflection point is confirmed, upward momentum could directly drive tokens to break through the key resistance band above.
#Fed #InterestRates #MacroEconomics