The Jackson Hole conference has just dealt a strong blow to the market’s expectations of easing monetary policy. A Fed representative sent an extremely hawkish message, asserting that inflation has not cooled down quickly enough to reach the 2% target, while current financial conditions are not even truly restrictive. The economy and the labor market are still holding strong, opening up the possibility that the Fed may need to keep raising interest rates in upcoming meetings rather than reversing policy prematurely.
In an immediate reaction, yields on US Treasury bonds with a 2-year maturity jumped to 4.28%, reflecting investors repricing the risk that interest rates will remain high for longer. This pressure not only weighs on precious metals but also directly affects liquidity in risk assets. For the crypto market, $BTC is likely to face a period of intense volatility and short-term adjustment pressure as macro capital flows return to a defensive stance.
#fed #lai_suat #lam_phat
In an immediate reaction, yields on US Treasury bonds with a 2-year maturity jumped to 4.28%, reflecting investors repricing the risk that interest rates will remain high for longer. This pressure not only weighs on precious metals but also directly affects liquidity in risk assets. For the crypto market, $BTC is likely to face a period of intense volatility and short-term adjustment pressure as macro capital flows return to a defensive stance.
#fed #lai_suat #lam_phat