🔥Interest rate cut has landed! Powell stated: Don't rush in the crypto world, this is the real signal
🚨Brothers, the grand performance of the early morning has finally concluded! The Federal Reserve has just officially announced—the first interest rate cut in 2025 has landed, cutting by 25 basis points, bringing the interest rate range to 4.00%-4.25%. This operation had no suspense, as the market had already sensed it in advance.
👀What’s the key point? Powell's attitude! To put it bluntly: inflation has been sufficiently suppressed, and now we need to pay more attention to employment; there won't be a reckless series of drastic rate cuts, but rather a steady and neutral approach. In other words—don't fantasize about immediately starting a continuous wave of aggressive rate cuts; the Federal Reserve is still prioritizing stability.
However, the details are quite interesting:
Among the 19 officials, some think there should be no cuts this year, some only want to cut once, while 9 support a total of 3 cuts within the year, and even one "hawk" directly called for a drastic cut of 150 basis points! This division already indicates a problem; internally, the Federal Reserve is not unified about the economic outlook.
Economic expectations have also been revised upwards: the GDP growth rate expectations for the next three years have been adjusted upward, indicating that the Federal Reserve’s confidence in a "soft landing" for the economy is stronger than in June.
🔥What does this mean for the crypto world?
The positive news has been realized: the 25 basis points were already priced in by the market and will not lead to an immediate explosive rally.
The pace is slowing down: Powell mentioned that this is risk management, not a new round of massive liquidity injections. For the crypto world, it means not to expect super loose monetary policy in the short term.
It’s a long-term positive for asset prices: with falling employment and a shift to neutral policy, once this direction is solidified, it leaves room for more capital release in the future. The overall environment is still biased towards positivity, especially in the medium to long term.
💡My opinion:
Don't fantasize that "rate cuts = immediate bull market" now, but this signal is clear enough— the Federal Reserve's focus is shifting, which is good for risk assets (including our crypto world). There’s a high probability that volatility will increase in the coming months, and market performance will rely more on capital expectations and narrative drives.
Sister Xiao summarized in one sentence: Not exciting in the short term, but positive in the long term; only those who can endure will be the real winners!
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