The Federal Reserve has once again triggered a firestorm, and this time the internal struggle is more severe than expected. Powell forcibly pushed through a 25 basis point rate cut, which directly split the Fed into three factions—some insist on maintaining stable rates, others advocate for a larger rate cut, and a bunch of non-voting members have voiced opposition through their actions.
The facts are clear: only 4 out of 12 regional Fed banks support this rate cut, and six policymakers are firmly holding the rate in the 3.75-4% range, even the former Philadelphia Fed President has come out to say this decision is wrong. Powell claims that divergences are normal, but everyone can see that even the big brother can't keep control of the scene. We can only imagine what kind of situation the new chair will face once in office.
For the crypto world, this Fed internal conflict is actually a double-edged sword. In theory, rate cuts are bullish for risk assets, but the problem is that the policy direction is now a tangled mess—no one can be sure whether the Fed will continue easing or suddenly change course. This uncertainty will directly translate into crypto price volatility, and short-term turbulence is expected to be quite intense.
Recently, there was a big event in the initial jobless claims data, which increased by 44,000 at once. Coupled with layoffs at major companies like Pepsi and HP, it has given new arguments to rate cut supporters. In the short term, expectations for liquidity might improve a bit, but the reality is that inflation hasn't met targets, and the policy itself is wavering. Whether this support can withstand the market selling pressure is really uncertain.
What do you all think? Is this Fed chaos a short-term boon for the crypto circle, or is it merely the calm before the storm? Share your judgment in the comments.
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LiquidationAlert
· 10h ago
Powell really can't hold back anymore. It feels like the Federal Reserve is about to split.
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The expectation of interest rate cuts is good, but I'm worried there might be a reversal again next week. The crypto market has to tremble these days.
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Honestly, it's hard to tell. With policies in chaos, who dares to hold heavy positions?
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Even the former Philadelphia Fed President opposed it. This decision is more outrageous than expected.
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Short-term fluctuations are inevitable. No matter which direction we bet on, it's hard to be certain.
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Liquidity improvement is real, but the inflation hurdle hasn't been cleared yet. It won't last long if it persists.
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Is this good news or a trap? I'm a bit confused right now. Let's talk about it later.
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Six people insist on 3.75-4%, Powell is forcefully cutting rates, and the Fed has really started playing power games.
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The crypto prices should shake a bit in the next couple of days. Let’s see who can catch this wave.
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A wave of layoffs + a sudden increase in unemployment benefits give the supporters of rate cuts confidence. But is this reliable?
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I just want to know if the new chair can straighten out this mess.
View OriginalReply0
RugResistant
· 12-12 13:17
Powell's move was really well played. Out of 12 banks, 4 support him. With internal conflicts like this, does he still want to stabilize? The crypto market is probably in for a rollercoaster ride.
View OriginalReply0
RektRecovery
· 12-12 13:13
fed's literally eating itself rn... classic architecture flaw when you build policy on sand lmao
Reply0
WhaleSurfer
· 12-12 13:07
Powell's recent move is really shooting himself in the foot; internal conflicts are boiling over, yet he insists on sticking to his stance. It's hard to tell whether the crypto community should follow the trend or run away.
View OriginalReply0
SmartMoneyWallet
· 12-12 13:02
Four support, six oppose, this data really shows the issue
Fund flows haven't kept up with the rate cut expectations at all. What are the whales waiting for?
With policies wobbling like this, the chip distribution is definitely chaotic, and in the short term, it's just a game to harvest the inexperienced
Inflation hasn't met the target yet and they're still printing money. On-chain data shows large investors are gradually fleeing
Instead of worrying about whether the positives are real or not, it's better to see clearly how the funds are playing the game
View OriginalReply0
SandwichHunter
· 12-12 12:52
Powell can't control the situation, and the new chairman has even less chance. The crypto circle has to go crazy along with the Fed's internal struggles.
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The Federal Reserve has once again triggered a firestorm, and this time the internal struggle is more severe than expected. Powell forcibly pushed through a 25 basis point rate cut, which directly split the Fed into three factions—some insist on maintaining stable rates, others advocate for a larger rate cut, and a bunch of non-voting members have voiced opposition through their actions.
The facts are clear: only 4 out of 12 regional Fed banks support this rate cut, and six policymakers are firmly holding the rate in the 3.75-4% range, even the former Philadelphia Fed President has come out to say this decision is wrong. Powell claims that divergences are normal, but everyone can see that even the big brother can't keep control of the scene. We can only imagine what kind of situation the new chair will face once in office.
For the crypto world, this Fed internal conflict is actually a double-edged sword. In theory, rate cuts are bullish for risk assets, but the problem is that the policy direction is now a tangled mess—no one can be sure whether the Fed will continue easing or suddenly change course. This uncertainty will directly translate into crypto price volatility, and short-term turbulence is expected to be quite intense.
Recently, there was a big event in the initial jobless claims data, which increased by 44,000 at once. Coupled with layoffs at major companies like Pepsi and HP, it has given new arguments to rate cut supporters. In the short term, expectations for liquidity might improve a bit, but the reality is that inflation hasn't met targets, and the policy itself is wavering. Whether this support can withstand the market selling pressure is really uncertain.
What do you all think? Is this Fed chaos a short-term boon for the crypto circle, or is it merely the calm before the storm? Share your judgment in the comments.