Goolsbee’s remarks are like a splash of cold water on “fast rate cuts” expectations.
According to a PANews report, the Fed’s Goolsbee said that the Fed would not oppose rate cuts only if it sees solid evidence that inflation has truly fallen to 2%. He also stressed that the Fed currently has no employment problem—the real issue is inflation. Regarding inflation expectations based on surveys, he also reminded people not to ignore them.
For the market, the slightly bearish angle for risk assets like $BTC , $ETH is that the room for short-term bets on rate cuts has been reduced. If U.S. interest rate expectations continue to stay high, both valuations and leverage sentiment may come under pressure. One possible scenario is that subsequent inflation data remains on the strong side, making the case for rate cuts harder to justify; another scenario is that inflation clearly eases, which would make policy expectations more likely to shift.
Are you more focused on the upcoming inflation data, or on changes in how Fed officials are framing things?
Picture 1: Goolsbee cools down rate-cut expectations · Source: partial screenshot of the page
Image source: https://www.panewslab.com/zh/articles/01a0c3be-4b67-712d-9916-4c28e5696ed9
According to a PANews report, the Fed’s Goolsbee said that the Fed would not oppose rate cuts only if it sees solid evidence that inflation has truly fallen to 2%. He also stressed that the Fed currently has no employment problem—the real issue is inflation. Regarding inflation expectations based on surveys, he also reminded people not to ignore them.
For the market, the slightly bearish angle for risk assets like $BTC , $ETH is that the room for short-term bets on rate cuts has been reduced. If U.S. interest rate expectations continue to stay high, both valuations and leverage sentiment may come under pressure. One possible scenario is that subsequent inflation data remains on the strong side, making the case for rate cuts harder to justify; another scenario is that inflation clearly eases, which would make policy expectations more likely to shift.
Are you more focused on the upcoming inflation data, or on changes in how Fed officials are framing things?
Picture 1: Goolsbee cools down rate-cut expectations · Source: partial screenshot of the page
Image source: https://www.panewslab.com/zh/articles/01a0c3be-4b67-712d-9916-4c28e5696ed9
