The Federal Reserve suddenly hit a nerve internally as a heavyweight board member made a late-night statement, causing the market to instantly stir.

Just this news broke, and traders collectively perked up their ears—Federal Reserve Board Member Christopher Milán issued a sharp warning: "Current interest rates are still significantly above the neutral level." Sounds professional? Actually, it’s just one sentence: interest rates are too high. He further pointed out that existing policies are adding unnecessary risks to the labor market.

What does this mean? The neutral interest rate is the "balance point" of the economy, neither overheating nor cooling down. When a traditionally hawkish official suddenly calls out "interest rates are too high," how strong is that signal? It’s like dropping a big stone into a calm lake.

The market reacted quickly—expectations of rate cuts were ignited. Previously, everyone thought high interest rates would be maintained long-term to combat inflation. Now even the most hawkish are frowning; the story has reversed. If even hawks believe policies are "overdone," then the central bank’s pivot might not be far off.

For risk assets, this is like receiving an "air refueling" signal. Once rate cut expectations solidify, interest rate-sensitive US stocks, especially tech stocks, along with cryptocurrencies like Bitcoin, could ride a new wave of liquidity. The entire market is holding its breath, waiting for more statements from Fed officials.

In simple terms: the most hawkish members are beginning to worry that they’ve been too hawkish. This could be the first shot of the true shift in monetary policy this year.