For months, the Fed has been pressuring the markets with hawkish statements like: “Inflation may remain high,” “We’re ready to raise rates if needed,” “We’re data-dependent,” and “Uncertainty around tariffs remains.”
But today’s data paints a very different picture: • PPI (Producer Price Index) came in negative — signaling cooling inflation, • Consumer spending is weakening, • And the broader economy is showing signs of a slowdown.
This makes the Fed’s true strategy increasingly clear:
They’ve been following a “talk tough, act soft” approach — using strong rhetoric to spook the markets while taking a more cautious stance in actual policy. Their core objectives are: 1. Containing inflation expectations — not just with rate hikes, but by shaping market sentiment through messaging. 2. Limiting capital flow into risk-on assets — they don’t want bubbles in crypto, tech stocks, or speculative markets.
Today’s data suggests one thing loud and clear: The Fed’s hawkish tone is becoming harder to maintain. And the pressure for rate cuts is building by the day.
Stay tuned — we could be approaching a pivotal shift for #crypto and broader risk assets
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#Fed Powell #ETH BTC
For months, the Fed has been pressuring the markets with hawkish statements like:
“Inflation may remain high,”
“We’re ready to raise rates if needed,”
“We’re data-dependent,”
and “Uncertainty around tariffs remains.”
But today’s data paints a very different picture:
• PPI (Producer Price Index) came in negative — signaling cooling inflation,
• Consumer spending is weakening,
• And the broader economy is showing signs of a slowdown.
This makes the Fed’s true strategy increasingly clear:
They’ve been following a “talk tough, act soft” approach — using strong rhetoric to spook the markets while taking a more cautious stance in actual policy. Their core objectives are:
1. Containing inflation expectations — not just with rate hikes, but by shaping market sentiment through messaging.
2. Limiting capital flow into risk-on assets — they don’t want bubbles in crypto, tech stocks, or speculative markets.
Today’s data suggests one thing loud and clear:
The Fed’s hawkish tone is becoming harder to maintain.
And the pressure for rate cuts is building by the day.
Stay tuned — we could be approaching a pivotal shift for #crypto and broader risk assets