In the latest policy assessment, Federal Reserve Chair Jerome Powell clearly stated that despite recent interest rate hikes, the current monetary policy as a whole still remains accommodative. This remark directly dispels market optimism that the rate-hiking cycle has already reached a restrictive level.
The comment underscores the decision-makers’ deep concern about inflation persistence, indicating that policy interest rates may need to be raised further and maintained for a longer period. The logic that the market had previously priced in—that policy would pivot toward easing—has been met with a serious challenge, and expectations for macro liquidity are once again subject to reassessment.
From the perspective of traditional financial markets, this hawkish tone will push up U.S. Treasury yields and the U.S. dollar index, increasing borrowing costs for funds. Valuations of global risk assets will come under pressure, and commodities and major equity indices may face further bouts of volatility and pullback pressure in the near term.
For the cryptocurrency market, the continuation of a high-interest-rate environment means that external liquidity cannot quickly flow back, and $BTC and mainstream assets face the test of insufficient incremental capital. Until the macro policy path becomes fully clear, investors should remain rational and restrained, and be alert to downside risks.
#Fed #JeromePowell #InterestRates
The comment underscores the decision-makers’ deep concern about inflation persistence, indicating that policy interest rates may need to be raised further and maintained for a longer period. The logic that the market had previously priced in—that policy would pivot toward easing—has been met with a serious challenge, and expectations for macro liquidity are once again subject to reassessment.
From the perspective of traditional financial markets, this hawkish tone will push up U.S. Treasury yields and the U.S. dollar index, increasing borrowing costs for funds. Valuations of global risk assets will come under pressure, and commodities and major equity indices may face further bouts of volatility and pullback pressure in the near term.
For the cryptocurrency market, the continuation of a high-interest-rate environment means that external liquidity cannot quickly flow back, and $BTC and mainstream assets face the test of insufficient incremental capital. Until the macro policy path becomes fully clear, investors should remain rational and restrained, and be alert to downside risks.
#Fed #JeromePowell #InterestRates