【Federal Reserve Officials Signal Major Shift: Rate Cuts Possibly Starting in 2026】
Recently, Fed Governor Milan's remarks have been making waves. The core message is: a potential 150 basis point rate cut in 2026.
In other words—an entire 1.5% reduction. This is no small move.
**What does this mean?**
Once the rate cut expectations materialize, market liquidity will improve significantly. Borrowing costs will decrease, and hot money may flow from the bond market into risk assets. The crypto market, stock market, and other highly volatile sectors are often the first to benefit.
Interestingly, the official also added: even if the unemployment rate drops further and 1 million new jobs are added, inflationary pressures may not be fully absorbed. Implicitly— the Fed’s expectation of a soft landing for the economy is strengthening.
**But this is not a story for tomorrow**
2026 is still more than two years away. In between, there will be countless economic data releases, inflation reports, and multiple Fed meetings. Each could rewrite the script.
From a side perspective, the fact that officials are willing to make such statements indicates that the Fed’s stance is shifting. Moving from a tightening cycle to a watchful stance, and possibly to easing expectations—this transition itself is a barometer of market sentiment.
Historical experience tells us that before a rate cut cycle begins, risk assets often perform the best. Abundant liquidity tends to push valuations higher, and the crypto market usually reacts more sensitively.
**Practical Advice**
Long-term expectations can be monitored, but don’t be blinded by enthusiasm. The real changes depend on actual data and the pace of policy implementation. Maintain a reasonable position size, continuously monitor economic indicators, and adjust strategies periodically—that’s the prudent approach.
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SchrodingerWallet
· 01-09 15:30
The story two years from now, and you're already boasting? Liquidity improvement is real, but there are too many variables in between. However, it's indeed worth paying attention to, as tokens like XRP with policy expectations might move first.
View OriginalReply0
WhaleWatcher
· 01-08 23:50
Talking about something two years from now as if it's already happening—I'm really impressed by this move.
View OriginalReply0
ZenMiner
· 01-08 23:49
Is 2026 still far away? Let's wait and see. Anyway, now is the right time to accumulate coins.
View OriginalReply0
PretendingToReadDocs
· 01-08 23:46
The thing two years from now is already being hyped up. I've seen this routine too many times... But liquidity is definitely worth paying attention to; XRP might really have a shot.
View OriginalReply0
ETHmaxi_NoFilter
· 01-08 23:27
It's still too early to talk about 2026, how many reversals will there be in the meantime... But the arrival of liquidity is indeed beneficial to crypto, that's for sure. I'm just worried it might be a false signal before another crackdown.
View OriginalReply0
DataChief
· 01-08 23:23
Is it urgent to think about 2026 now? Let's just get through this year first.
View OriginalReply0
TeaTimeTrader
· 01-08 23:22
Oh no, interest rates will be cut in 2026? What should I do now?
No matter how good the talk is, I still have to wait two years, anything can happen in the meantime... Forget it, just keep hoarding now.
#美国贸易赤字状况 $ZEC $PEPE $XRP
【Federal Reserve Officials Signal Major Shift: Rate Cuts Possibly Starting in 2026】
Recently, Fed Governor Milan's remarks have been making waves. The core message is: a potential 150 basis point rate cut in 2026.
In other words—an entire 1.5% reduction. This is no small move.
**What does this mean?**
Once the rate cut expectations materialize, market liquidity will improve significantly. Borrowing costs will decrease, and hot money may flow from the bond market into risk assets. The crypto market, stock market, and other highly volatile sectors are often the first to benefit.
Interestingly, the official also added: even if the unemployment rate drops further and 1 million new jobs are added, inflationary pressures may not be fully absorbed. Implicitly— the Fed’s expectation of a soft landing for the economy is strengthening.
**But this is not a story for tomorrow**
2026 is still more than two years away. In between, there will be countless economic data releases, inflation reports, and multiple Fed meetings. Each could rewrite the script.
From a side perspective, the fact that officials are willing to make such statements indicates that the Fed’s stance is shifting. Moving from a tightening cycle to a watchful stance, and possibly to easing expectations—this transition itself is a barometer of market sentiment.
Historical experience tells us that before a rate cut cycle begins, risk assets often perform the best. Abundant liquidity tends to push valuations higher, and the crypto market usually reacts more sensitively.
**Practical Advice**
Long-term expectations can be monitored, but don’t be blinded by enthusiasm. The real changes depend on actual data and the pace of policy implementation. Maintain a reasonable position size, continuously monitor economic indicators, and adjust strategies periodically—that’s the prudent approach.