Why does the "Federal Reserve not lowering interest rates" actually benefit the US stock and crypto markets in the long run?
High interest rates ≠ bear market
History shows that as long as the economy does not hard land, bull markets can continue in a high interest rate environment.
Not lowering interest rates = confidence in the economy
With inflation falling and employment stable, the Federal Reserve does not need to lower interest rates to "rescue the market," reflecting that a soft landing is indeed materializing.
Implicit easing comes from fiscal policy
High deficits + massive issuance of US debt = long-term liquidity injection, and even a stagnant monetary policy is still "injecting water."
The strong continue to be strong
Cash giants reap high interest and continue to buy back shares, while small and medium enterprises are squeezed by financing costs, with indices pushed higher by leading companies.
Crypto moves towards cash flow logic
ETH staking yields, stablecoin interest rate spreads, and DeFi projects with real income replace pure speculation from the zero interest rate era.
