Market focus is on several recent major moves by the Federal Reserve.

First, let's look at economic data. On January 14, the Fed released its first Beige Book of 2026, showing that eight out of twelve Federal Reserve districts experienced slight to moderate economic growth. Holiday shopping boosted consumer spending, the labor market remained mostly stable, and wage growth was moderate. However, inflationary pressures persist, with most regions experiencing mild price increases, and tariffs remain a common concern.

More attention-grabbing is the political turmoil. On January 11, Powell publicly confirmed that federal prosecutors served a subpoena on the 9th, related to his testimony before the Senate in June 2025 concerning the Federal Reserve building renovation project. Powell stated this was a government pressure tactic, reflecting that the Fed did not act according to the President's request to cut rates. Following this news, US stock index futures and the dollar index declined, while safe-haven assets rose in price.

Regarding monetary policy signals, they appear more cautious. On January 13, New York Fed President Williams said there is no room for rate cuts in the near future, expecting US GDP growth of 2.5%-2.75% in 2026. Fed Chair Powell reiterated that only if inflation continues to decline and the labor market remains stable might the Fed consider rate cuts in late 2026. Kashkari also maintained a conservative stance, stating that there is no motivation for rate cuts in January.

In the crypto market, the MEME sector remains hot. Under the Year of the Horse theme, various Musk-inspired coins continue to attract capital, with tokens like PEPE and SHIB remaining popular.