On December 15th, Federal Reserve Bank of New York President Williams made a rare proactive statement. This key figure in the Federal Reserve's power hierarchy spoke frankly and sincerely, causing the market to become unsettled.

He candidly stated that the current Fed policy is in a "pretty good position," implying that there is still room for further rate cuts. Last week, the benchmark interest rate was cut to 3.5%-3.75%. With this move, the tone of monetary policy shifted from "somewhat tight" to approaching "neutral."

What does neutral mean? Simply put, it is the point where the economy is neither being accelerated nor decelerated. Although Williams said that the stance is still "slightly tightening," the underlying message is clear: there is still room for rate reductions.

The upcoming challenge is clear. The Fed must balance two objectives: bring inflation back to the 2% target while not damaging the employment market. Williams mentioned that the risk balance has recently tilted—the downward pressure on employment is beginning to appear. Uncertainty factors in the labor market are increasing.

In other words, future policy adjustments will need to be more cautious. What does this mean for the crypto space? Every move by the Fed will directly impact asset prices.