When the Fed pros start to "sing contrary tunes", the crypto world buddies should keep their eyes peeled — subtle changes in policy direction often hide signals more important than Candlesticks!

The Fed cut interest rates this week, but Kansas City Fed President Esther George voted against it! Her reasoning is straightforward: the economic momentum is still decent, the labor market is basically balanced, but inflation is still too high and has not met the target for more than four years. She worries that cutting rates will make businesses and the public feel that "the Fed doesn't care about inflation," which could instead stimulate demand and push prices higher; more importantly, she believes that the current pressures in the job market are more due to technology and demographic structure, and a 25 basis point cut won't solve the problem.

Personal opinion:
Schmidt's dissenting vote sent an important signal—there are disagreements within the Fed regarding the "rate cut pace." Although the majority decided to cut rates, some insist on keeping a close watch on inflation, indicating that policy won't be "mindlessly loose." For the crypto world, this means that expectations for short-term liquidity easing may be discounted, while the fluctuations in inflation expectations could exacerbate market volatility.

What should retail investors do?
Don't just focus on whether the Fed will cut interest rates, but pay more attention to the "subtext" of inflation data and officials' statements. If subsequent inflation data remains high, or if there are more officials opposing easing, crypto assets may face downward pressure; conversely, if inflation shows a clear decline and expectations for easing increase, the crypto world may usher in a new round of opportunities.

Do you think the internal divisions within the Fed mark the beginning of a "hawkish rise" or is it just a temporary interlude? Share your thoughts in the comments!
#参与创作者认证计划月领$10,000 #Gate跨所交易平台CrossEx上线 #美联储如期降息25基点