US Treasury Secretary Scott Bessent has just spoken out, urging Fed policymakers to be more open about their interest-rate guidance. He emphasized that core inflation is cooling steadily, and that a surge in productivity driven by AI combined with regulatory easing will help contain inflation effectively.
The move echoes a lesson from the 1990s under former Fed Chair Alan Greenspan, when the Fed allowed the economy to grow more freely thanks to a wave of technology. The new administration’s public push for this view indicates an effort to reshape market expectations, paving the way for less hawkish monetary policy.
The growth-supportive stance from the Treasury could help curb the rise in US bond yields and exert mild pressure on the US dollar. Stock markets overall would likely benefit significantly when abundant liquidity expectations combine with the AI-driven growth narrative.
For the crypto market, macro easing signals are always an important catalyst for capital flowing into $BTC and other risk assets. If the Fed truly takes this perspective on board, crypto investors’ sentiment could be strengthened more solidly over the medium term. 🚀
#Fed #Macroeconomics #InterestRates
The move echoes a lesson from the 1990s under former Fed Chair Alan Greenspan, when the Fed allowed the economy to grow more freely thanks to a wave of technology. The new administration’s public push for this view indicates an effort to reshape market expectations, paving the way for less hawkish monetary policy.
The growth-supportive stance from the Treasury could help curb the rise in US bond yields and exert mild pressure on the US dollar. Stock markets overall would likely benefit significantly when abundant liquidity expectations combine with the AI-driven growth narrative.
For the crypto market, macro easing signals are always an important catalyst for capital flowing into $BTC and other risk assets. If the Fed truly takes this perspective on board, crypto investors’ sentiment could be strengthened more solidly over the medium term. 🚀
#Fed #Macroeconomics #InterestRates