5.17 AI Daily Crypto Assets industry faces significant changes and challenges

1. Headlines

1. UAE "Stargate" data center receives support from tech giants like NVIDIA and OpenAI

The UAE announced this week that it will build a large artificial intelligence data center named "Stargate" with a capacity of 5 gigawatts. A source confirmed that American tech giants NVIDIA, Cisco, and OpenAI will support this massive facility, which covers an area of 10 square miles.

Sources say that artificial intelligence chip leader Nvidia will provide hardware for the latest BlackwellG00 system. This data center will collaborate with the U.S. AI infrastructure project of the same name announced shortly after President Trump took office in January this year. It is still unclear whether Oracle is also involved in the UAE's Stargate project.

Analysis indicates that this initiative reflects the UAE's ambitions in the field of artificial intelligence. By collaborating with industry leaders, the UAE is expected to secure a place in the global artificial intelligence race. However, the construction process may face numerous challenges such as technology, funding, and talent. The future development remains to be seen.

2. The Securities and Exchange Commission warns against FOMO, promoting long-term strategies to cope with the maturation of cryptocurrencies.

As cryptocurrency continues to attract institutional inflows, the U.S. Securities and Exchange Commission ( SEC ) warns investors to be cautious of FOMO ( the fear of missing out ) phenomenon. Despite the soaring institutional adoption rates and the U.S. policy shift reinforcing the status of digital assets as a financial cornerstone, the SEC still urges investors to remain rational.

The SEC stated that although the cryptocurrency market is maturing and gaining widespread recognition, investors should not blindly chase after it. Instead, they should develop long-term strategies and prudently assess risks and returns. The SEC emphasized that cryptocurrencies are still in a relatively emerging stage and there are many uncertainties.

Analysts point out that the SEC's warning aims to maintain market order and protect investor interests. The volatility of cryptocurrencies and the lack of regulation have always been constraints on the industry's development. The SEC's stance reflects the regulatory body's vision for standardizing and guiding the healthy development of the industry.

However, there are also views that the SEC's cautious stance may hinder innovation. The decentralized nature of cryptocurrency presents a certain tension with traditional financial regulation. Finding a balance between protecting investors and promoting innovation will be a challenge that needs to be addressed in the future.

3. Ethereum is undergoing an unprecedented scrutiny.

Ethereum is undergoing an unprecedented wave of skepticism. Since the launch of the ETF, there has been a net sell-off/outflow of over $1.2 billion, leading to a massive trust crisis from Ethereum core researchers/EF to the developer community organizations, and even to Consensys-related businesses and external investors.

Vitalik Buterin needs to better guide different participants in terms of direction and goals, as Ethereum has become a very large decentralized business entity in the entire cryptocurrency market and even the traditional market. There has never been such a business entity in history, and the challenges for the entire Ethereum community and Vitalik Buterin will only become more severe, reaching a level where one cannot be established without the other.

This time, the most discussed topic in 2049 was surprisingly the Ton ecosystem. Of course, Western funds are generally not optimistic or favorable towards Ton and Web2 platforms at the moment, but they did not answer the question of whether to invest or not.

Analysis indicates that Ethereum is facing unprecedented challenges. As a leader in the cryptocurrency space, the development status of Ethereum will have a profound impact on the entire industry. If Ethereum falls into a crisis of trust and stagnation in development, it could shake investors' confidence in the entire cryptocurrency ecosystem.

On the other hand, the rise of the Ton ecology also reflects investors' desire for emerging public chains. Although Web2 platforms are currently not favored, there is still uncertainty about future development. The entire cryptocurrency world is undergoing profound changes, the old order is being reshaped, and new forces will emerge.

4. The French Ministry of the Interior: Will provide enhanced security protection for leading cryptocurrency entrepreneurs.

The French Ministry of the Interior has stated that it will provide enhanced security measures for the country's leading cryptocurrency entrepreneurs and their families. This decision comes in response to at least three kidnapping incidents targeting leaders in the cryptocurrency industry and their families that have occurred since the beginning of this year.

French Interior Minister Bruno Le Roux stated that the new security measures include priority access to police emergency hotlines, police home visits, and security briefings. Law enforcement personnel will also receive "anti-cryptocurrency money laundering training."

Analysis suggests that this move reflects the French government's increasing attention to the cryptocurrency industry. As the influence of cryptocurrencies continues to grow in France and globally, the security risks faced by relevant entrepreneurs and practitioners are also increasing.

However, there are also views questioning whether the French government should provide "privileged" protection for specific groups. Some people are concerned that this may exacerbate social division and provoke unfair controversies.

Nevertheless, this incident highlights the high-risk nature of the cryptocurrency industry. In addition to technical and regulatory challenges, personal safety issues are also a major concern for industry professionals. Only by establishing a comprehensive risk prevention mechanism can the cryptocurrency industry truly mature.

5. False news about Bitcoin ETF approval triggers market turmoil

A false news report about the approval of a Bitcoin ETF triggered severe fluctuations in the cryptocurrency market. A hacker attacked the social media account of the Securities and Exchange Commission, posting false information that affected the price of Bitcoin, from which they illegally profited $50,000.

The court eventually sentenced the hacker to 14 months in prison. The incident not only triggered a cybersecurity scrutiny by the Securities and Exchange Commission, but also raised concerns about cryptocurrency market manipulation.

Analysis indicates that misinformation has a significant destructive power in the highly uncertain and unregulated cryptocurrency market. On one hand, investors need to raise their risk awareness and be cautious about media reports; on the other hand, regulatory agencies should also strengthen law enforcement to maintain market order.

At the same time, this event also reflects the significant impact of Bitcoin ETF approval on the market. The investors' desire for regulatory clarity and institutional products has driven further development of the cryptocurrency market. Only by establishing a sound regulatory system can cryptocurrencies truly mature.

Overall, this event warns us that there are still many uncertainties and risks in the cryptocurrency market. Investors, regulatory agencies, and industry participants need to remain vigilant and work together to promote the standardized development of the industry.

2. Industry News

1. Bitcoin faces pressure at $100K, with traders showing a bearish sentiment towards derivatives trading volume.

The struggle of Bitcoin above $100,000 can be attributed to the growing uncertainty among traders, with short positions exceeding long ones. This imbalance limits upward momentum, but historical patterns suggest that if overly bearish sentiment triggers new buying, a reversal may occur.

Analysts point out that the funding rate in the Bitcoin futures market remains in a neutral range, indicating that investors are cautious about further price increases. However, long-term holders of Bitcoin have been consistently increasing their positions over the past few weeks, which could be a positive sign suggesting that institutional investors hold an optimistic outlook on the long-term prospects of Bitcoin.

Nonetheless, Bitcoin is facing significant challenges after breaking through the key resistance level of $105,000. Some analysts believe that Bitcoin may encounter strong selling pressure near this resistance level, leading to a price pullback. Therefore, investors need to closely monitor Bitcoin's performance at this critical level.

2. The supply shortage of Bitcoin is building momentum for the price prediction of $200,000 by 2025 – insights from wis.

The reduced supply of Bitcoin and rising institutional interest are driving optimism for a significant price surge. Analysts at wis predict that Bitcoin may break the $200,000 mark by the end of 2025.

The main basis for this prediction is the supply shortage of Bitcoin. As more Bitcoins are locked up by long-term holders, the circulating supply will further decrease. Meanwhile, the demand for Bitcoin from institutional investors continues to grow, which could lead to an imbalance between supply and demand, thereby driving up prices.

Wis analysts also pointed out that the adoption rate of Bitcoin is steadily increasing, which may further drive up prices. As more businesses and countries begin to accept Bitcoin as a means of payment or reserve asset, the practicality of Bitcoin will be enhanced, thereby attracting more investors.

However, analysts also warn that Bitcoin's price could experience wild swings along the way. Investors need to remain cautious and keep a close eye on changes in the macroeconomic and regulatory environment, as these factors could have a significant impact on the price of Bitcoin.

3. Smart Contracts in Central Banks

Project Pine is a collaboration between the Federal Reserve Bank of New York and the Bank for International Settlements (BIS), exploring the use of smart contracts in central banks, which could reshape monetary policy tools in the tokenized market.

The project aims to utilize blockchain technology to simplify and automate certain processes of central banks, such as issuing and managing central bank digital currencies (CBDC). Through smart contracts, central banks can more effectively control the money supply and make adjustments according to pre-defined rules.

Analysts believe that if this concept is successfully implemented, it could greatly enhance the transparency and accountability of central banks. At the same time, it could also bring new opportunities to the tokenized market, as smart contracts can be used to issue and manage various digital assets.

However, there are also concerns about this concept. Some cryptocurrency enthusiasts believe that bringing central banks into blockchain could undermine the idea of decentralization. In addition, the security and reliability of smart contracts is also a problem that needs to be addressed.

Overall, Project Pine represents an interesting attempt between central banks and the cryptocurrency industry. Its success or failure could have profound implications for future monetary policy and the tokenized market.

4. HYPE shows potential breakout, forming a rounded bottom pattern. If it breaks through $28.43, the target is $35.17.

The HYPE cryptocurrency has shown strong upward momentum in the past few weeks, forming a rounded bottom pattern around the $20 price level. If it can break through the resistance level of $28.43, analysts expect HYPE may continue to rise, with a target price of $35.17.

This optimistic expectation mainly stems from the improvement of the fundamentals behind the HYPE project. The project recently announced several significant milestones, including partnerships with well-known collaborators and the expansion of its ecosystem. These developments are expected to enhance the utility and adoption of HYPE, thereby driving up its price.

Another factor supporting the rise of HYPE is the overall recovery of the cryptocurrency market. As the prices of major coins like Bitcoin and Ethereum increase, investors' interest in smaller altcoins is also growing. HYPE, as a highly regarded altcoin, may benefit from this trend.

However, analysts also remind that the rise of HYPE may be influenced by market sentiment. If investors become pessimistic about the prospects of the cryptocurrency market, HYPE may face downward pressure. Therefore, investors need to closely monitor changes in market conditions and manage risks effectively.

5. XRP is currently trading at $2.42, and if it breaks through the resistance level of $2.58, it shows significant growth potential, indicating a strong price increase.

XRP has performed strongly in the past few weeks, hovering around a price of $2.42. If it can break through the key resistance level of $2.58, analysts expect XRP to show significant growth potential, indicating a strong price increase.

The main factors supporting XRP's rally include the prospect of a resolution of Ripple's legal dispute (SEC) the U.S. Securities and Exchange Commission and the increasing demand for XRP from institutional investors.

Ripple's negotiations with the SEC have made progress, and both sides are expected to reach an agreement on whether XRP is classified as a security. If XRP is deemed non-security, it will achieve broader compliance, thereby attracting more institutional investors.

At the same time, some major cryptocurrency exchanges and foundations have begun to increase their holdings of XRP, indicating that institutions are optimistic about the long-term prospects of XRP. As more institutional funds flow in, the price of XRP may rise further.

However, analysts also warn that the rise of XRP may be affected by technical resistance. If it cannot effectively break through the resistance level of $2.58, XRP may face profit-taking pressure. Therefore, investors need to closely monitor XRP's performance at this key level.

3. Project News

1. Olfaction Protocol partners with gert to compose a decentralized trading revolution with AI intelligent trading and extreme performance chain.

Olfaction Protocol is the first AI-driven decentralized trading agent protocol in the Web3 space. At its core is an AI trading agent system that can self-learn and evolve autonomously, capable of real-time insights into market trends and making trading decisions.

The latest development is that Olfaction Protocol has reached a cooperation with gert to deploy an AI intelligent trading system on top of gert's high-performance chain. gert is a third-generation blockchain network that focuses on extreme transaction speed and low cost, which fully meets Olfaction Protocol's high-performance needs for the underlying chain.

This cooperation means that AI intelligent transactions will be decentralized on the public chain for the first time. Olfaction Protocol's AI agent will rely on the high throughput and low fees of the gert chain to achieve real-time intelligent transaction decision-making and execution. This will completely disrupt the traditional centralized transaction architecture and bring new possibilities for decentralized transactions.

Industry analysts believe that the decentralization of AI intelligent trading will bring revolutionary changes to cryptocurrency trading. On the one hand, AI agents can continuously optimize trading strategies and increase trading returns. On the other hand, a decentralized trading structure is conducive to improving transparency and fairness, and eliminating the risk of improper operation of centralized exchanges. In the future, AI intelligent trading is expected to become the mainstream mode of cryptocurrency trading.

2. Movement Labs and Mantra events provoke reflection on market-making mechanisms in the crypto market

Recently, some executives of Movement Labs have been exposed for colluding with market makers to sell $38 million worth of MOVE tokens on the open market. At the same time, Mantra's OM token plummeted over 90% within hours at the end of April without any obvious negative news, raising questions in the market about the token unlocking arrangements and the transparency of over-the-counter trading.

These events have exposed the hidden contracts, private agreements, and over-the-counter transactions in the cryptocurrency market that distort the supply of tokens and the price discovery mechanism. The analysis suggests that these opaque operations severely undermine market fairness and investor interests.

As a result, multiple market-making institutions are reevaluating the risk underwriting processes for tokens and are requiring project parties to provide greater transparency. Hong Kong market maker Metalpha stated that it has adjusted its trading structure, emphasizing long-term strategic consistency, and introduced mechanisms to prevent excessive sell-offs and false trading volumes.

Industry insiders point out that informal trading in the over-the-counter market is disrupting the dynamics of token supply, increasing the difficulty for market makers to maintain liquidity. In the future, the crypto market needs to establish a more standardized and transparent market-making mechanism to protect investors' rights and maintain market order.

3. The Sui ecosystem continues to expand, and Move-related projects are receiving much attention.

During the Token2049 conference, the Move ecosystem projects Sui, Aptos and Movement attracted much attention. The Sui ecosystem continues to expand, with the addition of Grayscale Trust and Native USDC support, which is expected to further promote the development of the ecosystem.

Sui is an emerging public blockchain based on the Move language, featuring high throughput and low fees. The latest update is that the Sui ecosystem has added Grayscale Trust and Native USDC support, providing better infrastructure for institutional investors and stablecoin applications.

Meanwhile, the number of Sui ecosystem projects continues to increase, but there are still relatively few star projects. Analysts believe that Sui needs to accelerate its incubation plans to cultivate more blockbuster applications in order to attract more traffic and funds into the ecosystem.

The development direction of another Move ecosystem project, Aptos, has also attracted market attention. The focus of the Aptos Foundation is still unclear, which has caused some confusion in the community. Movement, as the only Move ecosystem project yet to issue tokens, is eagerly anticipated as its first case.

Overall, the Move ecosystem is gradually maturing, attracting the attention of numerous developers and funds. In the future, whether Move projects can give birth to truly killer applications will determine the development prospects of this ecosystem.

4. AI+Web3 has become a new favorite in the industry, and innovative applications are generating heated discussions.

At the Token2049 conference, the combination of AI and Web3 has become a hot topic. More and more traditional AI entrepreneurs are starting to venture into Web3 entrepreneurship, and AI + Web3 applications have also become a new track of interest for foundations and exchanges.

Representative AI+Web3 projects include Gensyn, Hyperbolic and other projects in the Computing field, as well as Web2 type AI projects like Schelling AI. In addition, projects like Title.xyz, which are dedicated to image/video generation, are also receiving a lot of attention.

The innovative applications that combine AI and Web3 have sparked heated discussions in the industry. Supporters believe that AI technology can empower Web3 applications, enhance user experience, and promote industry development; opponents are concerned that the uncertainties of AI technology may pose security risks.

Analysts point out that most AI + Web3 applications are still in the Meme concept stage and there is still some distance from actual implementation. However, in the long run, the integration of AI and Web3 will be an inevitable trend and is expected to give rise to disruptive innovative applications.

5. The industry hopes for long-term entrepreneurs and calls for support for real use cases and sustainable business models.

At the Token2049 conference, there is a call from both inside and outside the industry for more support for long-term entrepreneurs, to cultivate real use cases and sustainable business models.

Over the past year, the cryptocurrency market has been sluggish, with many popular sectors such as fully on-chain games, NFTs, and Web3 social platforms being discredited, leaving project teams and investors feeling generally confused. At the same time, some projects saw a sharp decline in active user numbers after launch, leading founders and investors to cash out and exit, causing significant losses for the community.

Industry analysts believe that such short-sighted and speculative behavior is harming the entire cryptocurrency ecosystem. To help the industry emerge from its downturn, it is essential to support teams that are committed to long-term entrepreneurship, pursuing real use cases and sustainable business models.

Some successful long-term entrepreneurial projects such as Jambo Technology and Solv Protocol are demonstrating the value of long-termism through their actions. Industry insiders are calling for exchanges, foundations, and investors to focus on long-term entrepreneurs, creating a better development environment for them and promoting true innovation and growth in the industry.

IV. Economic Dynamics

1. The downgrade of the US credit rating raises market concerns.

Economic Background

The US economy has shown weakness over the past year, with a slowdown in GDP growth, persistently high inflation rates, and some signs of loosening in the job market. Nevertheless, the US remains the world's largest economy, and its economic direction has far-reaching effects on global markets.

Important Event

On May 16, the international rating agency Moody's downgraded the United States' sovereign credit rating from the highest level of Aaa to Aa1, citing the continuous rise in the U.S. government's debt level and the increasing proportion of interest expenses. This is the third agency to downgrade the U.S. rating, following Fitch and S&P.

Market Reaction

Moody's downgrade immediately raised concerns in the market. The three major U.S. stock indices fell slightly that day, as investors' confidence in the U.S. economic outlook was shaken. Meanwhile, the demand for safe-haven assets like gold and Bitcoin increased, as investors sought to hedge against risks.

Expert Opinion

Goldman Sachs analysts indicated that the downgrade of the U.S. rating reflects ongoing market concerns about the U.S. fiscal situation. If the government cannot effectively control its debt levels, it may face greater economic pressure in the future. On the other hand, Citibank analysts believe that the impact of the downgrade on the U.S. economy may be limited, depending on whether the government can implement appropriate fiscal and monetary policies to respond.

2. The US and Europe restart trade negotiations, with tariff issues as the focus.

Economic Background

The global trade environment has been severely impacted in recent years, with ongoing trade disputes between major economies and an increase in tariff barriers. This has posed challenges to the global economic recovery, affecting business investment and consumer confidence.

Important Events

According to reports, the EU and the US recently exchanged negotiation documents for the first time regarding the resumption of trade talks, covering areas such as tariffs, digital trade, and investment opportunities. Both sides hope to eliminate trade barriers and expand market access through negotiations.

Market Reaction

The market is looking forward to the talks, hoping to ease long-standing trade tensions. However, some analysts are cautious about the prospect of negotiations, believing that the differences between the two sides in the steel, automobile and other industries are still large, and it is difficult to reach a comprehensive agreement in the short term.

Expert Opinion

Columbia University economics professor Saha stated that trade disputes are one of the main risks facing the global economy today. If Europe and the United States can reach a consensus on key issues, it will inject new vitality into global trade. However, he also warned that the negotiation process could be very difficult, and both sides need to make concessions.

3. Japan maintains its position, and the prospects for the US-Japan trade agreement are unclear.

Economic Background

As the world's third-largest economy, Japan has always been an important trading partner for the United States. However, in recent years, there have been differences between the two sides on issues such as auto tariffs, and trade negotiations have been progressing slowly.

Important Events

According to reports, the Japanese government has refused to make concessions on the issue of auto tariffs, insisting that the United States eliminate the high tariffs on Japanese car exports, which could affect the prospects for reaching a trade agreement between the two sides.

Market Reaction

The market expressed disappointment, believing that the differences between the two parties on key issues could prolong the negotiation process. The Japanese stock market fell on the day, and the yen showed slight fluctuations against the dollar.

Expert Opinion

Professor Naoyoshi Ono from the University of Tokyo stated that car tariffs are the crux of the US-Japan trade negotiations. He believes that if Japan makes significant concessions on this issue, it could impact the domestic industry. He thinks both sides need to seek a compromise within a range that is acceptable to each other.

4. Former Federal Reserve Chair Calls for Improved Communication Transparency

Economic Background

The Federal Reserve's policy moves have always been a focal point of great interest for global markets. In recent years, the Fed's actions regarding interest rate hikes and the reduction of its balance sheet have faced widespread scrutiny, and its communication strategy has also been heavily criticized.

Important Events

Former Federal Reserve Chairman Ben Bernanke called at a meeting for the Fed to provide a more comprehensive explanation of its interest rate decisions to the public, as well as a deeper analysis of potential forecast scenarios.

Market Reaction

Market participants agree with Bernanke's suggestions. They believe that the lack of transparency from the Federal Reserve has always been an issue, and clearer policy communication will help reduce market volatility and improve the predictability of decision-making.

Expert Opinion

Harvard University economics professor Romer pointed out that the Federal Reserve's shortcomings in communication strategy may affect the transmission effect of its policies. He suggested that the Federal Reserve should explain the basis for its decisions more in public forums to allow for better market expectation management.

5. Regulation & Policy

1. The U.S. Securities and Exchange Commission will review executive compensation disclosure rules.

The U.S. Securities and Exchange Commission (SEC) announced that it will hold a roundtable on June 26 to discuss executive compensation disclosure requirements with representatives of publicly traded companies, investors, and experts in related fields. This initiative aims to ensure that current rules remain cost-effective while avoiding excessive non-essential information in the disclosure of key information.

As a regulatory body for publicly traded companies, the SEC is responsible for establishing and overseeing rules regarding the disclosure of executive compensation. In recent years, disclosure requirements have been increasingly expanded, focusing more on the changes in the components of compensation rather than the total compensation amount. However, it remains unclear whether the increased complexity truly provides investors with additional information that is crucial for their investment and voting decisions.

The SEC stated that it will discuss the effectiveness of current disclosure rules and possible directions for improvement with representatives from various parties. Some experts believe that overly detailed disclosure requirements may increase compliance costs for companies, while also potentially leading to information overload, which could adversely affect investors' decision-making. Therefore, the SEC needs to weigh the depth and breadth of disclosures to ensure that the disclosed information is genuinely valuable to investors.

Market participants generally believe that reasonable disclosure of executive compensation helps improve the transparency of corporate governance and protect investor rights. However, disclosure rules also need to keep pace with the times to avoid being overly cumbersome. All parties hope that the SEC will listen to different voices at this meeting and be prepared for future rule adjustments.

The French government will provide additional security guarantees for crypto entrepreneurs.

In light of the recent increase in kidnapping incidents related to cryptocurrency in France, the French Ministry of the Interior has decided to provide enhanced security measures for cryptocurrency entrepreneurs and their families.

As a cryptocurrency regulatory authority, one of the responsibilities of the French Ministry of the Interior is to ensure the personal safety of industry practitioners. Since the beginning of this year, there have been at least three kidnapping incidents targeting leaders in the crypto industry or their family members in France. The most recent attempted kidnapping occurred on May 13, when the daughter and grandson of a French crypto entrepreneur were attacked by four masked assailants on the streets of Paris, fortunately escaping with minor injuries.

To cope with this severe situation, French Interior Minister Bruno Retailleau stated in a statement on Friday that a series of specialized measures will be implemented, including immediate and short-term actions, to prevent, deter, and stop such behaviors, thereby protecting the industry.

Specific measures include providing priority access to police emergency hotlines for cryptocurrency entrepreneurs, police home visits, and offering security training to help individuals understand the best protective practices. Law enforcement personnel will also receive "anti-cryptocurrency asset money laundering training."

This decision has been widely welcomed by industry insiders. Many entrepreneurs have expressed that there have always been significant security risks in the cryptocurrency industry, and the government's protective measures help alleviate their concerns. However, some have pointed out that in addition to passive defense, the government also needs to strengthen its crackdown on criminals.

Overall, the French government's initiative aims to maintain the normal operation of the cryptocurrency industry and create a safe and reliable environment for practitioners. As the industry continues to develop, relevant regulatory policies will also be continuously improved.

3. The Federal Reserve plans to lay off 10% of its workforce in the coming years.

Federal Reserve Chairman Powell informed employees via a memorandum on Friday local time that the agency plans to reduce its workforce by about 10% mainly through natural attrition over the next few years.

As the central bank of the United States, the Federal Reserve plays an important role in formulating monetary policy and regulating the banking industry. In recent years, the functions and scale of the Federal Reserve have expanded, resulting in a continuous increase in personnel. However, in the current economic situation, the Federal Reserve believes that it is necessary to appropriately streamline the institutional size to improve operational efficiency.

According to informed sources, the layoff plan will include offering delayed departure options to some employees, applicable to eligible employees at the Federal Reserve and 12 regional Federal Reserve Banks. Powell stated in a memo: "I have asked leaders at all levels of the Federal Reserve system to gradually advance functional integration, modernize business practices, and ensure we maintain an appropriate scale to fulfill our statutory mission."

This decision has sparked some controversy. Supporters argue that streamlining redundant staff helps reduce operating costs and improve decision-making efficiency. However, some are concerned that mass layoffs could affect the normal operations of the Federal Reserve and weaken its ability to fulfill its responsibilities.

However, Powell emphasized that layoffs will be gradual and will not affect the core functions of the institutions. He stated that the Federal Reserve will continue to be committed to achieving the dual goals of maximum employment and price stability.

Overall, the Federal Reserve's decision aims to optimize its internal structure and improve operational efficiency. However, the execution process and its effects still need further observation. As an important economic decision-making institution, every move of the Federal Reserve will be closely monitored by the market.