The internal drama at the Federal Reserve is becoming increasingly complex. On January 8th, Milan, a Federal Reserve Board member, suddenly called for interest rate cuts of over 100 basis points by 2026. As soon as this statement was made, the global markets reacted instantly—U.S. stocks surged, the Dow and S&P hit new highs simultaneously, chip stocks followed suit with a big rally, and SanDisk even soared by 27%. On the same day, the RMB central parity rate was lowered to 7.0187, and the capital markets had already reacted in advance.

But the question is, what’s the real issue? Once the December meeting minutes were released, internal disagreements within the Fed were fully exposed. Milan advocated for rate cuts, but Goolsby and his group insisted on holding steady. The dot plot was torn apart, and the policy direction became a mystery. On one side, economic growth was stable at 4.3%, while on the other, the unemployment rate had jumped to 4.6%, and inflation stubbornly persisted. Powell even said that the current situation is like walking on thin ice.

Global central banks are starting to take different paths—Japan is raising interest rates, Europe and the UK are on hold, and dollar liquidity is facing restructuring. More painfully, Powell’s term is about to end, and the new chair has not yet been decided, with political pressures subtly emerging.

The market sees clear opportunities: explosive AI demand boosting chip stocks, precious metals benefiting from silver breaking $80, Chinese assets becoming more attractive, and the Hang Seng Index and Shanghai Composite making decent gains. But the underlying uncertainties are very real—geopolitical tensions, political elections, personnel changes intertwined. Is this round of rate cuts to rescue the market, or are we stepping into even greater risks? The crypto market will likely need to pay attention not just to the Fed’s words but also to what the underlying data truly indicates.