Final warning! Fed Chair Wash: Zero tolerance for inflation—$BTC $ETH ’s life-or-death game is this week

Friend, I just saw a testimony. Fed Chair Jerome Powell (Watsh) went head-to-head with Congress. This guy speaks straight—no beating around the bush.

In his written testimony, he dropped a hard line: FOMC members have zero tolerance for persistently elevated inflation. We all stand firmly committed to restoring price stability. Then he hit again: Monetary policy is the top priority. If we get the policy right—we will—then the inflation surge of the past five years will become history.

Go ahead, take a closer look. This isn’t a dovish stance—it’s a battle-hawk in hawks. Market analysis says the remark further reinforces tightening signals, echoing recent warnings from several Fed officials. Previously, some had already hinted that more rate hikes might still be needed to curb inflation.

Coincidentally, on the day this testimony was released, the U.S. Bureau of Labor Statistics also published the June consumer inflation data. When the two are lined up side by side, markets are on edge.

Powell is still fairly optimistic about the broader economy. He said the labor market is overall stable, with almost no signs of layoffs, and nominal wage growth is also steady. But when it comes to artificial intelligence, his tone turns cautious. He acknowledges that AI is driving a large jump in business investment, but it also brings new uncertainties. His exact words were: We do not yet know to what extent the economy will benefit from AI build-out. New economic opportunities bring new challenges for policymakers, and the Fed is closely monitoring the impact on inflation and the labor market.

Note that the meeting minutes from June 16 to 17 show that as concerns about the labor market eased, officials’ focus on inflation clearly increased. That was the first meeting Powell presided over after taking office. Everyone voted unanimously to keep the target range for the federal funds rate unchanged at 3.5% to 3.75%—the fourth straight pause.

But don’t think it’s a solid front internally. The latest rate forecasts reveal a split: nine officials expect at least one additional 25-basis-point rate hike this year, and six of them expect at least two hikes; meanwhile, the other nine officials expect rates to stay unchanged or shift toward rate cuts.

What’s interesting is that Powell, who has consistently criticized the approach of forward guidance, chose not to submit an individual rate forecast this time. Think about what kind of signal that is.

Since he took office in early May, Powell has made fighting inflation the core policy issue, repeatedly stressing that monetary policy’s top objective is the priority. This congressional testimony is basically another re-emphasis: until inflation comes down to the target level, they won’t easily pivot to easing. For the bond market, and rate-sensitive assets—including your $BTC and $ETH —that directly affects the outlook.

One sentence summary: Powell is betting his own credibility to suppress inflation, and rates won’t be cut anytime soon. Think it through before moving your crypto position.

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