Recently, Federal Reserve officials have collectively taken a hawkish stance, and expectations for interest rate cuts have quickly cooled: the probability of a rate cut in September dropped from 80% to 65%. Schmid stated that "there is no need to rush into rate cuts", Bostic only expects one cut this year, and Harker further expressed that "he will not support a rate cut at this time".
Tonight, Powell's speech is crucial to see if he continues the hawkish tone.
If he continues to pour cold water, the pattern of a strong dollar and pressure on gold and U.S. stocks is likely to continue, and the crypto market may also struggle to stand alone, with BTC and ETH possibly facing setbacks along with risk assets.
