Dovish signals! Daly's heavy statement: U.S. employment in crisis, the Federal Reserve may cut interest rates 1-2 more times, the cryptocurrency market welcomes liquidity benefits
The Federal Reserve's dovish signal is fully on! San Francisco Federal Reserve President Daly recently stated that the vulnerability of the U.S. labor market is becoming more prominent, clearly supporting another 1-2 interest rate cuts within the year, and accelerating the pace of the easing cycle!
Last month, the Federal Reserve held steady, maintaining interest rates in the range of 3.50%-3.75%, but internal disagreements on rate cuts have widened, with two board members directly voting in favor. Daly acknowledged that the current employment risks far exceed inflation: December unemployment rate 4.4%, January non-farm payroll expectations only 60,000-80,000, annual employment data may face a downward revision of one million, youth employment under pressure, and increased risk of corporate layoffs becoming the core driver for rate cuts.
She emphasized that inflation is still above the 2% target, but the impact of tariffs is fading, and inflation is expected to ease. Compared to price stability, the deterioration of the labor market needs more vigilance. Federal Reserve Vice Chairman Jefferson also issued a simultaneous warning that there is a possibility of a sudden weakening of employment, and the consensus on easing continues to solidify.
As expectations for rate cuts rise, the U.S. dollar is under pressure, and global liquidity easing expectations are elevated. The cryptocurrency market, as a high-risk asset, welcomes a key policy window, and fund preferences are expected to continue to warm. Next week's non-farm payrolls will be a key verification point, with the strength or weakness of the data directly determining the pace of rate cuts and market trends.
Do you think the Federal Reserve will cut rates once or twice first? Will this easing cycle ignite the cryptocurrency market?
