2026-01-13 23:50:25

The Federal Reserve's recent remarks have completely stirred the market.

In the past few days, central bank officials across the country have taken turns to speak, with so much information that it's almost unbelievable. Richmond Fed President Barkin frankly stated that although inflation is still somewhat high, there is no sign of it continuing to rise for now. Following that, Atlanta Fed President Bostic delivered a major message: inflation pressures are easing, and there is a good chance to return to the 2% target by the end of the year.

More importantly, Bostic believes that the current interest rate level is already hovering in the neutral zone, and there is little need to cut rates further. He positions the current policy as being precisely balanced between tightening and easing. He also specifically mentioned that the latest inflation data is encouraging, which further boosts expectations for a soft landing of the economy.

But things are not that simple. House Speaker Johnson suddenly spoke out, demanding that the Department of Justice continue to investigate Federal Reserve Chair Powell. His logic is that if Powell is innocent, the investigation will prove it. This political maneuver instantly triggered a market frenzy—what else is hidden behind Washington and the Fed?

The current situation looks like this: the downward trend of inflation seems to have stabilized, and the Fed has no plans to cut rates in the short term, but political uncertainties still exist.

The question is, will all this really unfold as the Fed expects? Can Powell successfully weather this political storm? Will inflation this year fall back to 2% as scheduled? These all need time to verify.

What do you think about the future development of this situation?

DASH-1,19%

ZEC-1,66%

SUI-0,13%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

15 Likes

Reward
15
8
Repost
Share

Comment

0/400

ImpermanentPhobia

· 01-15 23:57

Politics and economics are intertwined, and that's where the trouble begins. Whether Powell can hold on is hard to say, but one thing is certain: rate cuts in the short term are off the table. Will there be a rate cut or not? That's the real key to the market trend. Nice inflation data—what's the use? Once the political cards are played, everything gets chaotic. Soft landing? Ha, easy to say. When the time comes, it'll be a different story. Can DASH, ZEC, and SUI still rise? It depends on how the Federal Reserve finally decides. Right now, buying is just a gamble that the political turmoil won't blow over. This move to investigate Powell is indeed ruthless. The market was stable to begin with, and now there's an added layer of uncertainty. Can inflation return to 2% by the end of the year? I don't believe it. Every year, they say the same thing, and every year, it falls short.

View OriginalReply0

TokenTaxonomist

· 01-15 06:45

actually, the fed's messaging taxonomy here is taxonomically incorrect... statistically speaking, soft landing narratives don't age well when political pressure enters the ecosystem. per my analysis, powell's in for a rough ride regardless of what the data suggests.

Reply0

ForkMaster

· 01-14 21:55

Ha, it's the same old trick—good news is immediately followed by bad news, and political turmoil can cause the price to plummet instantly. That's how I got caught with the milk powder money for my three kids. With both no interest rate cuts and political investigations hitting simultaneously, it's a miracle if the market can stay stable.

View OriginalReply0

PonziWhisperer

· 01-14 00:20

Political turmoil disrupts the scene, Powell's move is a bit uncertain --- The expectation of a soft landing is back again, every time they say that, but what’s the result? --- Muṣālaim's words are just for listening, Washington has already started causing trouble --- No rate cut? Then how can we trade this market, everyone is counting on a rate cut --- I would only believe inflation can return to 2% if I see it myself, data can be deceptive --- The key is politics; no matter how good the economy is, it’s useless. Power struggles are the main dish --- $DASH $ZEC $SUI Can this wave follow the trend? Feels a bit uncertain --- The Fed calls for stability, Congress is causing trouble, who really has the final say? --- Every time the central bank makes a statement, the market goes crazy. This time too, brace for backlash --- Is the easing of inflation truly easing or just pretending? No one can say for sure now

View OriginalReply0

Degen4Breakfast

· 01-14 00:19

The Fed's these people take turns brainwashing, saying nice things, but a rate cut is hopeless. Isn't this just suppressing the crypto circle? The Federal Reserve is showing muscle again. As soon as political storms emerge, all the talk about soft landings is just nonsense. With Powell under this political pressure, it feels like trouble is brewing. When the policy reverses, the crypto market might have a chance. I would believe inflation returning to 2% if it actually happened. Right now, it's all talk, and maintaining high interest rates is just bloodsucking. These people say one thing and do another. The current crypto market is just a pawn being manipulated by politics. A short-term rate cut is unlikely. Coins like SUI and DASH can only hold out a little longer. This political investigation really stirs the pot. It's hard to say whether market sentiment can stay stable. What soft landing? I think it's just the last hurrah before a hard landing. Musalem's words sound nice but are useless. The market still depends on how Powell handles it. The whole situation is just a smokescreen. No one can really see through the true intentions.

View OriginalReply0

GetRichLeek

· 01-14 00:13

The Fed's latest move really has me stumped... Saying soft landing but not cutting interest rates, isn't this just teasing us? $SUI I've been lurking for a while, waiting for this political storm to pass so I can directly rally, otherwise I would really suffer a loss.

View OriginalReply0

CoffeeNFTrader

· 01-14 00:11

This political turmoil is really exhausting the market, with interest rate cuts still nowhere in sight. SUI is still falling. --- Speaking of Powell, this round is a bit tough. The Federal Reserve's internal voices are unanimously hawkish, and politicians are causing trouble again. Truly incredible. --- Inflation back to 2%? I highly doubt it. The Fed's rhetoric has been the same year after year, but what’s the result? --- Musailem said the interest rate won't be lowered from the neutral position... So how are we holding coin holders supposed to live? We can only wait for a rebound. --- U.S. politics really drags down the market. It's 2024, and they're still investigating Powell. --- Soft landing, soft landing. How many times have we heard that? Is this time really different? Anyway, I don't believe it. --- I haven't paid much attention to DASH and ZEC, but given the current trend, it's unlikely they'll see a short-term rally. Let's keep observing. --- If interest rates really stay at the neutral level, the crypto market might remain stagnant for the next half year.

View OriginalReply0

BlindBoxVictim

· 01-14 00:10

Powell is really under a lot of pressure, with political turmoil happening one after another. How can the crypto market stay stable if this continues? We've been talking about a soft landing for so long. I just want to see when the rate cuts will come, not just talk and no action. Johnson's recent moves are absolutely brilliant; the market reaction is the best proof. How long can the Federal Reserve maintain its balanced stance? Honestly, I can't see through it. Can inflation really return to 2%? It all seems like just a hopeful vision. DASH, ZEC, SUI—these coins have been fluctuating with the news lately. So annoying. The turmoil isn't over yet, and I don't dare to increase my positions in the short term. Can Powell hold up? That’s the real key.

View OriginalReply0