Trump again calls for interest rates to be cut to 1% or lower, but the Federal Reserve has raised the target range for the federal funds rate to 3.75%-4.00%.
The impact of such disagreements on the market is not in the slogans themselves, but in the cost of capital and dollar liquidity. PANews, citing Reuters, reports that several Fed officials still emphasize the risk that inflation remains above the 2% target; Collins also supports the rate hike and warns that future inflation may be “significantly higher” than the 2% target.
For risk assets such as BTC and ETH, if the market continues to price “higher-for-longer” interest rates, valuation sensitivity will be dampened; if the rate-cut narrative does not regain dominance, macro data is more likely to see back-and-forth volatility. Are you more focused on the U.S. dollar index and U.S. Treasury yields, or on the expectation of another rate hike in October?
Caption 1: The Fed’s rate hikes offset Trump’s calls for rate cuts · Source: partial screenshot of the page
Image source: https://www.panewslab.com/zh/articles/01a0ce22-0d99-754d-839a-d338f25710db
The impact of such disagreements on the market is not in the slogans themselves, but in the cost of capital and dollar liquidity. PANews, citing Reuters, reports that several Fed officials still emphasize the risk that inflation remains above the 2% target; Collins also supports the rate hike and warns that future inflation may be “significantly higher” than the 2% target.
For risk assets such as BTC and ETH, if the market continues to price “higher-for-longer” interest rates, valuation sensitivity will be dampened; if the rate-cut narrative does not regain dominance, macro data is more likely to see back-and-forth volatility. Are you more focused on the U.S. dollar index and U.S. Treasury yields, or on the expectation of another rate hike in October?
Caption 1: The Fed’s rate hikes offset Trump’s calls for rate cuts · Source: partial screenshot of the page
Image source: https://www.panewslab.com/zh/articles/01a0ce22-0d99-754d-839a-d338f25710db
