Panic Sell: ETH Plummets! Federal Reserve's Harker States: No Support for Rate Cuts in September, High Inflation is the Key

On August 21, Cleveland Fed President Harker clearly released hawkish signals, becoming an important trigger for volatility in the crypto market. She stated that if Federal Reserve officials were to make a policy decision tomorrow, she would not support a rate cut in September, primarily because "the current inflation level is too high and has been on the rise over the past year," and "based on the current information, there is no reason to cut rates."

Although Harker acknowledged concerns about the labor market, she emphasized that the current unemployment rate is still close to her estimate of the "full employment level." She ultimately clarified her position: "From an overall balance perspective, it is crucial to maintain a moderately tightening policy stance, as only in this way can we continue to bring inflation back to target levels."