On December 17th, Fed Governor Waller's speech dominated the financial news—here are the two main points: First, interest rates could still be lowered by 50 to 100 basis points; second, there's no need to rush.

This statement sounds a bit like "both... and...", but the underlying logic is quite clear.

**Room for rate cuts is there, but the pace should be steady**

Waller summarized the situation well—the labor market is indeed somewhat soft, inflation isn't as fierce as before, but it hasn't yet returned to the Fed's ideal 2%. In this context, the case for rate cuts is strong, and the forecast of 50-100 basis points of room provides enough reassurance for the market.

But why not rush? The reason is also quite practical: if cuts happen too quickly, inflation could rebound. So rather than making aggressive cuts, a steady adjustment is better, which can ease economic pressure without leaving room for inflation to bounce back.

**What this means for the crypto market**

Honestly, this is a relatively warm signal for risk assets like Bitcoin and Ethereum. Expectations of rate cuts are still there, liquidity will gradually be released, but the certainty of the pace actually reduces market uncertainty. However, the issue is—if rate cuts proceed more slowly than expected, or if inflation data fluctuates, the market could face a significant correction.

Therefore, the key moving forward is to closely monitor the Fed's subsequent signals, as well as the actual trends in employment and inflation data.