Powell's "Gentle Words" Behind: The Federal Reserve Stabilizes Small Banks, While Crypto Wallets Remain Cold
The Federal Reserve has again sent a "gentle signal," but the wallets in the crypto world have not warmed up.
Today, the Federal Reserve's official website updated a speech about the "Importance of Community Banks," which Powell did not attend, and was hosted by Vice Chair Miki Bowman.
The content sounds quite heartfelt: it states that community banks are the foundation of the American financial system, closely related to local economies and ordinary people; the Federal Reserve will continue to "understand, listen, and alleviate burdens," making regulation more suited to small banks, while also ensuring the bottom line of system safety.
However, while these words sound gentle, they actually hide a "small thought"—clearly cheering for the "small bank camp."
It’s worth noting that after several mid-sized banks collapsed in the first half of the year, market confidence has not fully recovered. The essence of this speech from the Federal Reserve is to "stabilize" rather than release dovish signals of easing; it is more about soothing emotions, with little indication of a real policy shift.
Here, Powell's team talks about "understanding," but does not ease the potential for interest rate hikes; the crypto world hears these mild statements, but the market has not shown improvement, and the wallets remain cold—after all, without substantial easing policies, the crypto world will have to wait a bit longer to heat up.
