Yellen signals flexibility in inflation policy: what changes for the markets?

In December, U.S. Treasury Secretary Janet Yellen made it clear that the Fed’s strict 2% inflation target may not be as untouchable as previously thought. Her stance opened up discussions about possible adjustments to the target range, which could vary between 1.5% to 2.5% or even 1% to 3%, depending on economic conditions.

This position comes at a time when global central banks face complex challenges: combating illicit activities in the financial system while dealing with persistent inflationary pressures. The flexibility signaled by Yellen reflects a broader trend of recognizing that rigid monetary policies may not be the best solution for all economic scenarios.

For the alternative assets market, including BTC, this openness to reassessing inflation targets takes on special significance. Historically, Bitcoin has been positioned as a hedge against inflation and currency devaluation, precisely because it thrives in environments of political uncertainty and monetary easing.

Janet Yellen’s statement suggests that the Fed is willing to adapt its approach as economic conditions evolve. This does not mean abandoning inflation responsibility but recognizing that a single rigid metric may not capture the full complexity of contemporary economic challenges. For investors and analysts, this is a sign that the next phase of U.S. monetary policy will be less deterministic and more focused on dynamic adjustments.