🔥 BREAKING: Fed Signals Shift — Urgency for 50bps Cut FADES 🔥
📰 Odaily Planet Daily reports that Federal Reserve Governor Lisa Milan delivered a measured but important policy update, dialing back the need for aggressive easing — while keeping the long-term dovish bias intact.
📉 Key Takeaways (Simplified):
🔹 Less Rush for Big Cuts
Milan said the urgency for the previously discussed 50 bps rate cut has “diminished”, following recent policy adjustments.
🔹 Neutral Rate Is Falling
The Fed now sees the neutral interest rate (R★) as structurally lower.
👉 If rates don’t adjust downward, recession risks could rise.
🔹 Inflation Data Caveat
Some inflation signals may be distorted by the government shutdown, meaning current data could be overstating real inflation pressure.
📊 Market Implications: • No immediate 50 bps cuts
• Slower, more controlled easing ahead
• Long-term direction still downward
• Focus shifts to a gradual glide path toward a lower neutral rate
💡 Why Crypto Cares A softer rate trajectory is generally supportive for risk assets — including $BTC , $ETH , and $BNB .
If liquidity conditions ease over time, BNB could benefit from: • Improved market sentiment
• Higher on-chain and exchange activity
• Renewed altcoin momentum
🤔 Big Question:
Is the Fed’s new strategy all about finding and adapting to a “lower neutral rate” without shocking the economy?