This hawkish round of comments from the Federal Reserve has effectively put a pause on the sentiment of risk assets.
Citing a report from China Finance News, PANews said that multiple Fed officials have recently been releasing hawkish signals in close succession, with their focus largely on saying that the inflation risk has not yet ended. Cleveland Fed President Loretta Mester said that elevated inflation has persisted for more than five years, and she is concerned that inflation expectations may become entrenched. Kansas City Fed President Jeff Schmid said the Fed has “not yet resolved the inflation problem,” and warned that the level of U.S. debt is “very extreme.” New York Fed President John Williams added that repeated supply-side shocks could keep pushing up long-term prices.
According to CME’s “Fed Watch,” the market expects there is about a 64.2% chance that the Fed will raise rates by 25 basis points in October. If rate expectations continue to heat up, BTC, ETH, and other high-beta altcoins are more likely to come under pressure. But if U.S. Treasury yields and the U.S. dollar weaken, sentiment could also see a rebound for a time. Which are you more focused on—rate hike expectations for October, or the reaction in U.S. Treasury yields and the U.S. dollar?
Figure 1: Fed hawkish remarks weigh on risk assets · Key news points
Image source：https://www.panewslab.com/zh/articles/01a0dbd6-b380-72f2-adc4-e896557fac56
Citing a report from China Finance News, PANews said that multiple Fed officials have recently been releasing hawkish signals in close succession, with their focus largely on saying that the inflation risk has not yet ended. Cleveland Fed President Loretta Mester said that elevated inflation has persisted for more than five years, and she is concerned that inflation expectations may become entrenched. Kansas City Fed President Jeff Schmid said the Fed has “not yet resolved the inflation problem,” and warned that the level of U.S. debt is “very extreme.” New York Fed President John Williams added that repeated supply-side shocks could keep pushing up long-term prices.
According to CME’s “Fed Watch,” the market expects there is about a 64.2% chance that the Fed will raise rates by 25 basis points in October. If rate expectations continue to heat up, BTC, ETH, and other high-beta altcoins are more likely to come under pressure. But if U.S. Treasury yields and the U.S. dollar weaken, sentiment could also see a rebound for a time. Which are you more focused on—rate hike expectations for October, or the reaction in U.S. Treasury yields and the U.S. dollar?
Figure 1: Fed hawkish remarks weigh on risk assets · Key news points
Image source：https://www.panewslab.com/zh/articles/01a0dbd6-b380-72f2-adc4-e896557fac56
