Recently, the Federal Reserve's remarks have caused quite a stir in the market. Richmond Fed President Barkin's statement on Tuesday was particularly significant—future interest rate decisions will enter a "fine-tuning" phase, in other words, no longer employing large adjustments, but rather closely following data changes and responding flexibly.
The current policy rate has already been pinned in the neutral zone, but the Fed faces a somewhat awkward situation. Although inflation has retreated from last year's high points, it still hasn't reached the 2% target; as for the unemployment rate, it remains low at the moment, but the market can no longer afford much deterioration. Barkin specifically mentioned that under this dual-objective balancing act, it is essential to constantly guard against downside risks; otherwise, one wrong move could hurt the economy.
Looking ahead, the U.S. economy showed good resilience last year. Consumer data remains solid, and business investment is steadily progressing. However, one issue worth noting is that growth is overly dependent on a few sectors, such as technology and finance, which are hot tracks, while traditional manufacturing and other fields perform relatively poorly. Additionally, market sentiment fluctuations are quite noticeable, with many investors holding reservations about the outlook.
But Barkin maintains a cautiously optimistic attitude toward this year's economic prospects. He believes that the high levels of uncertainty from last year will gradually dissipate, and by 2026, consumer and business confidence are expected to rebound. Interestingly, he mentioned that policy tools like tax reform and deregulation, combined with rate cuts, could generate a strong synergistic effect this year, directly underpinning economic growth.
These signals together clearly indicate that the Fed will adopt a more cautious and flexible approach to policy operations, but confidence in growth prospects remains. What does this mean for crypto assets like $BREV, $RAD? How will the liquidity environment change? Under neutral interest rates, is there still room for risk assets to rise? Which sector will be the biggest driver of economic growth in 2026? These are questions the market needs to digest.
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GweiWatcher
· 01-10 00:02
Fine-tuning sounds good, but I'm worried it's just another pie in the sky 🍰 Waiting eagerly for the rebound in 2026, but for now, we have to hold on.
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FlyingLeek
· 01-07 11:45
Fine-tuning is essentially saying "we don't really know what to do either," so we'll just take it one step at a time.
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IronHeadMiner
· 01-07 11:44
Fine-tuning sounds good, but essentially we're still gambling on data. Once the data doesn't cooperate, it becomes awkward.
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Tech finance dominates, traditional industries are being completely suppressed. No matter how you look at this situation, it's unstable.
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Rebound in consumption in 2026? Let's wait and see. The market sentiment is so cautious now, who dares to believe it?
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Tax reform plus rate cuts, is the Federal Reserve trying to desperately extend the life of risk assets? Liquidity is the key in this game.
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Neutral interest rates are stuck here. Crypto assets can't benefit from policy dividends. The real battle is yet to come.
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The unemployment rate has no room left. One wrong step and the economy could collapse. Barkin's words are truly cautious.
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Inflation hasn't reached 2%. Why does it seem like this goal is always out of reach? What game is the Federal Reserve playing?
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The so-called synergy sounds mysterious. Better to see if it can truly support growth. The slogans are flying everywhere.
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Can risk assets still rise under neutral interest rates? It depends on who dares to take the risk.
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Can BREV and RAD benefit from this round of policies, or do we have to wait for liquidity to really arrive?
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ShibaSunglasses
· 01-07 11:32
Fine-tuning sounds great, but I'm afraid it's just talk.
When the rate cut expectations are fully priced in, tech stocks soar, and traditional industries can only gather dust, right?
The 2026 Bitcoin, there are still too few people believing in it.
This neutral interest rate approach still feels like buying time.
View OriginalReply0
SpeakWithHatOn
· 01-07 11:31
Fine-tuning sounds impressive, but actually the Federal Reserve is running out of confidence.
The rate cut expectations haven't materialized yet, so risk assets are rallying first—this trick has been overused.
Technology and finance support half the sky; if this structure collapses, it's game over. Don't just focus on macro data.
Tax reform and deregulation sound wonderful, but only truly matter if they can be implemented.
Neutral interest rate is just neutral interest rate. Don't talk to me about a rebound in 2026. Let's see if we make it to next year first.
$BREV $RAD, can these two be bottom-fished? Wait and see how liquidity moves before deciding.
Consumer confidence rebounding? Buddy, just look at what those internet folks who took pay cuts are saying.
Recently, the Federal Reserve's remarks have caused quite a stir in the market. Richmond Fed President Barkin's statement on Tuesday was particularly significant—future interest rate decisions will enter a "fine-tuning" phase, in other words, no longer employing large adjustments, but rather closely following data changes and responding flexibly.
The current policy rate has already been pinned in the neutral zone, but the Fed faces a somewhat awkward situation. Although inflation has retreated from last year's high points, it still hasn't reached the 2% target; as for the unemployment rate, it remains low at the moment, but the market can no longer afford much deterioration. Barkin specifically mentioned that under this dual-objective balancing act, it is essential to constantly guard against downside risks; otherwise, one wrong move could hurt the economy.
Looking ahead, the U.S. economy showed good resilience last year. Consumer data remains solid, and business investment is steadily progressing. However, one issue worth noting is that growth is overly dependent on a few sectors, such as technology and finance, which are hot tracks, while traditional manufacturing and other fields perform relatively poorly. Additionally, market sentiment fluctuations are quite noticeable, with many investors holding reservations about the outlook.
But Barkin maintains a cautiously optimistic attitude toward this year's economic prospects. He believes that the high levels of uncertainty from last year will gradually dissipate, and by 2026, consumer and business confidence are expected to rebound. Interestingly, he mentioned that policy tools like tax reform and deregulation, combined with rate cuts, could generate a strong synergistic effect this year, directly underpinning economic growth.
These signals together clearly indicate that the Fed will adopt a more cautious and flexible approach to policy operations, but confidence in growth prospects remains. What does this mean for crypto assets like $BREV, $RAD? How will the liquidity environment change? Under neutral interest rates, is there still room for risk assets to rise? Which sector will be the biggest driver of economic growth in 2026? These are questions the market needs to digest.