powellspeech

The interest rate cut has finally arrived and the market is buzzing but Powells latest speech delivered a mix of caution and surprise that everyone needs to understand clearly. This meeting brought two major shifts that will shape how traders move through 2026 and beyond. The message was part warning and part encouragement and it left many people wondering how long this rebound can truly last.
The first key point is the Federal Reserve dot plot for December. The Fed now expects only one single interest rate cut in all of 2026. This is far below what the market had been pricing in and it is a major reality check for anyone hoping for a strong easing cycle next year. If the Fed sticks to this outlook it means we may go through the entire year without any substantial relief from interest rates. This aligns with what many analysts including Shuqin mentioned earlier. The Fed is still focused on sticky inflation and does not want to overstimulate the economy too soon. Powell made it clear that inflation progress is happening but not fast enough for aggressive cuts.
But after giving the market this tough pill to swallow the Fed also offered something sweeter. The second key point is a new liquidity boost. The Fed will purchase forty billion dollars in assets this month to expand the balance sheet. This move starts right away and it gives markets the kind of short term support they have been hoping for. This amount is slightly higher than what traders expected and it immediately pushed both crypto and stocks into a rebound. Liquidity is the fuel for risk assets and this injection arrived at the perfect moment.
Still the Fed was careful with its wording. Powell stressed that this is not quantitative easing. The Fed is only buying short term Treasury bills because the overnight loan market has been unusually tight. These purchases are not part of a long cycle. The Fed plans to stop them next year once liquidity stabilizes. In simple terms this is temporary help not a long term strategy. That is an important detail because markets often overreact to any sign of balance sheet expansion.
So we are left with a very mixed outcome. On one side the Fed is signaling almost no interest rate cuts in 2026 which removes a major bullish narrative. On the other side they just turned on a small liquidity tap that could support markets for a short period. That is why we saw an immediate rebound in both crypto and stocks. Liquidity gives traders confidence even when rate policy stays tight.
The real question now is how long this reaction can last. The good news may be used up quickly because traders know the next meeting will not bring more cuts. If liquidity does not continue the market could lose momentum fast. This is a moment to stay alert and avoid chasing short lived excitement. Good news can disappear as quickly as it appears and the Fed has already made it clear that nothing long term has changed yet.
With this mix of warning and support what do you think will matter more for the market in the coming weeks?
#fed #PowellSpeech

The Federal Reserve Chair Jerome Powell spoke after the new rate cut and his tone showed a clear shift in the way the Fed is thinking about the economy. He explained why the Fed decided to cut rates and what it plans to do next. His talk also gave a better idea of how the next few months may look for markets and for assets like Bitcoin.

Powell said the recent rise in goods prices is mainly due to higher tariffs. He called this a one time jump in the price level. He made it clear that this is not a sign of strong new inflation. This view keeps the door open for more rate cuts if the job market keeps slowing.

The biggest message from Powell was that the Fed is now more worried about workers than inflation. He pointed to slower job growth softer wage gains and signs that companies feel less pressure when hiring. He said the risks to employment are rising. This is a major shift after two years in which the Fed focused almost fully on high inflation.

Powell also shared one of the most important updates for markets. The Fed will start buying short term Treasury bills to keep enough reserves in the banking system. He said this is not the same as the old money printing programs. Still the effect is the same. It adds fresh liquidity to the system. The first month will include about forty billion in purchases. More liquidity often makes financial conditions easier which can help risk assets. This is why many people in crypto are watching this step closely.

Powell did not try to slow down market hopes for more rate cuts next year. He did not promise anything but he also did not fight against the idea. This silence signals that more cuts in early twenty twenty six are still likely. He also said long term inflation expectations remain stable. That gives the Fed more space to support the job market without hurting trust in its policy.

For crypto this backdrop is helpful. Early rate cutting cycles often bring more liquidity and more interest in higher risk assets. With Powell calling recent inflation pressures temporary seeing more risks in the job market starting new liquidity injections and showing no pushback against more rate cuts the bigger picture looks brighter for digital assets as we move toward twenty twenty six.

If job numbers weaken more or if inflation keeps slowing the flow of money into crypto could rise even faster. Powell’s talk shows that the Fed has turned its attention toward protecting a soft job market. For assets like Bitcoin this could mark the start of a more steady and
#PowellSpeech #WriteToEarnUpgrade #CryptoNewss #cryptooinsigts

Federal Reserve Chair Jerome Powell's press conference following the recent 25-basis-point (bps) rate cut provided a critical, clarified view on the Fed's pivot, focusing heavily on rising employment risks and a new strategy to inject liquidity. The key takeaways confirm a shift from an 'inflation-first' stance to a growing concern for the labor market.
​📉 Employment Risks Overtake Inflation Concerns
​The central message is that the Fed's focus has decisively shifted.
​Explicit Labor Market Concern: Powell stated that "downside risks to employment have risen," marking the clearest acknowledgment to date that the labor market is now viewed as vulnerable.
​Signs of Cooling: The pivot is justified by data showing slowing job gains, softer wage growth, and anecdotal evidence of businesses finding it easier to hire, all pointing to cooling labor demand.
​Philosophical Shift: This marks a significant change after two years of prioritizing inflation control, paving the way for further easing if the job market weakens.
​💰 Liquidity Boost via Treasury Bill Purchases
​A major announcement with direct market implications was the plan to inject liquidity.
​$40 Billion Bill Purchases: Powell confirmed the Fed will begin purchasing short-term Treasuries (bills) to maintain "ample reserves" in the financial system.
​Not QE, But Liquidity Injected: While the Fed emphasized this is not Quantitative Easing (QE), the mechanics are similar, with roughly $40 billion in purchases expected in the first month alone.
​Market Impact: More reserves generally translate to easier financial conditions and a stronger appetite for risk assets, a constructive signal for markets.
​🎯 Inflation Framed as Temporary
​Powell downplayed the recent bump in goods inflation, giving the Fed greater flexibility.
​Tariff-Driven Effects: The recent rise in goods prices was attributed largely to tariff pass-through effects and described as "one-time shifts in the price level."
​No Structural Obstacle: This framing suggests the Fed sees no resurgence of underlying inflation and no structural barrier to continued disinflation.
​Anchored Expectations: Long-term inflation expectations remain stable, further granting the Committee flexibility to support employment without jeopardizing policy credibility.
​🚀 Market Outlook: No Pushback on Further Easing
​Powell's commentary reinforced market expectations for a continued easing cycle.
​No Resistance to Further Cuts: The Chair avoided committing to a preset path but notably did not push back against market pricing that anticipates additional rate cuts in early 2026. This silence is seen as tacit reassurance.
​Constructive for Risk Assets: The combination of temporary inflation, rising employment concerns, new liquidity injections, and expectations for future cuts creates a meaningfully more supportive macro backdrop for risk assets like crypto and Bitcoin heading into 2026.

The latest FOMC meeting came with major surprises for the markets. Here’s a simple breakdown in clean language for every crypto and finance user 👇

📉 25bps Rate Cut
The Federal Reserve finally cut interest rates by 0.25%, giving markets a small boost.
This move was expected, but not everyone agreed on it.
⚖️ Most Divided Fed Vote Since 2019
The decision came with a 9-3 split, showing big disagreements inside the Fed.
Interestingly, Trump-appointed member Miran pushed for a 50bps cut instead of 25bps.
💵 Fed Buying $40B Treasury Bills
Over the next 30 days, the Fed will buy $40 billion worth of Treasury bills.
This increases liquidity and usually supports risk assets.
📊 Dot-Plot: Only 1 Cut Expected in 2026
The Fed’s dot-plot is signaling just one rate cut next year.
This means the Fed wants to stay cautious and avoid over-cutting too fast.
🧮 Powell on Jobs Data
Powell said job numbers were overstated by nearly 60,000,
and future payroll data may even turn negative.
That’s a warning sign for the economy.
🔥 Inflation Still High, But Cooling
Powell admitted inflation is “elevated but trending down.”
This is why the Fed feels safe enough to start cutting rates slowly.
🎯 Rates Now in ‘Neutral Range’
According to Powell, interest rates have moved into a neutral zone,
meaning they are no longer restricting the economy too much.
🇺🇸 Trump’s Reaction
Trump quickly reacted and said:
“The rate cut should’ve been bigger, and markets should go UP more.”

📌 Final Thoughts
A small cut, a divided Fed, and mixed signals for 2026.
Markets may stay volatile but liquidity injection and a rate cut usually support risk-on assets like crypto.
@Monitor Ali
#fomc #PowellSpeech #RateCut #Market_Update