$GPS
Breaking! The Federal Reserve's dovish stance shocks the market! Another 1-2 rate cuts confirmed? The crypto market welcomes a liquidity turning point
A sudden big news of interest rate cuts from the Federal Reserve! Mary Daly, president of the San Francisco Fed, clearly stated: To respond to the ongoing weakness in the U.S. labor market, the Federal Reserve is highly likely to cut rates another 1-2 times, completely igniting global easing expectations!
Daly bluntly said that U.S. wages are eroded by high inflation, new job additions are scarce, and the actual pressure in the labor market is far greater than the surface data. Although she supports pausing rate cuts, there are sufficient conditions for further easing. The core premise of rate cuts is the fading impact of tariffs and steady decline in inflation. Federal Reserve Vice Chair Jefferson simultaneously warned of the risk of sudden weakening in employment, completely aligning with Waller's proposal to cut rates by 25 basis points during the January meeting.
U.S. job vacancies in December hit a five-year low, with significant downward revisions in data, confirming a cooling job market. Traders quickly brought forward the expectation of the first rate cut to June-July, and U.S. Treasury yields have fluctuated lower. This week, key data such as non-farm payrolls, CPI, and employment cost index will be released intensively, with the non-farm data on February 11 being a key watershed for the rate cut timetable, directly determining the Federal Reserve's policy pace.
For the crypto market, the Federal Reserve's rate cut signals the end of the global liquidity tightening cycle, a weaker dollar, and a rebound in risk appetite, which may lead to a valuation recovery for mainstream crypto assets, with expectations of institutional funds returning continuing to heat up.
The non-farm payroll data will be revealed this week. Do you think the Federal Reserve will cut rates in advance? Will this easing cycle trigger a new round of market movement in the crypto market?
