Intense debates within the Fed regarding interest rate cuts are attracting widespread follow, with their influence even surpassing the fluctuation of the crypto assets market. Due to the government shutdown in the U.S., which has led to missing key economic data, Fed decision-makers find themselves in an unprecedented dilemma, resulting in three parties each holding their own views.

Radical faction representative Milan believes that the neutral interest rate has already fallen and that there should be five rate cuts this year. He pointed out that housing inflation may decline with a lag and expressed little concern about tariffs driving inflation. However, Milan also acknowledged that current decisions, in the absence of government data support, are like "blind men touching an elephant."

Representative Schneider of the conservatives holds a different view. He believes that interest rates have just reached a "slightly restrictive" level, and inflation has not yet reached the 2% target, so there is no need to rush into cutting rates. Schneider also cited evidence such as the first increase in durable goods prices in thirty years and a 3.5% surge in service prices, warning that aggressive rate cuts could give businesses the power to raise prices, ultimately harming consumer interests.

Moderate representative Kashkari has raised the possibility of "stagflation," pointing out the dilemma of slowing employment and an inflation rate reaching 3%. He also highlighted a core issue: whether the impact of tariffs on inflation is short-term or long-term, which remains inconclusive.

This debate essentially reflects the Fed's trade-off between "job preservation" and "inflation control." However, for the Crypto Assets market, policy uncertainty may pose the greatest risk. If the U.S. government shutdown continues until the Fed meeting in October, decision-makers may have to "guess" in making decisions without data support, a situation that is more unpredictable than the speculative behavior of the Crypto Assets market based on news.

In this complex economic environment, crypto asset investors need to remain vigilant and closely follow the Fed's policy direction and its potential impact on the market. At the same time, it is also important to pay attention to changes in the global economic situation, as these factors may have far-reaching effects on the crypto asset market.