The recent remarks by Federal Reserve Bank of New York President Williams have caused ripples in the market. He explicitly stated that there is no sufficient reason to cut interest rates in the short term, which directly impacts market expectations for policy adjustments early next year. What does this mean? It is very likely that the Federal Reserve will continue to maintain the current policy rate until there are clearer signals of inflation declining.

From a market perspective, this statement has changed investors' expectations for a rate cut in early 2026. As a core decision-maker with permanent voting rights, Williams' views carry significant weight. But this isn't necessarily bad news—economists generally see the possibility of a "soft landing," meaning that inflation gradually decreases while the economy does not fall into recession. Stable employment and growth prospects support this optimistic outlook.

The Federal Reserve is currently adopting a standard "data-dependent" approach. They are closely monitoring key indicators, especially whether inflation can gradually break below the important threshold of 2.5%. While there is no short-term reason to cut rates, this also reflects policymakers' cautious attitude toward the current economic situation. For investors holding crypto assets, understanding these subtle policy signals is crucial.