The Federal Reserve decision-making body recently signaled a strong policy adjustment. In the latest projection, Federal Reserve officials indicated that interest rates could be cut by as much as 150 basis points by 2026, while simultaneously promoting approximately 1 million new jobs. Once these remarks were released, they immediately drew widespread attention in the market.

From a policy perspective, this is no longer speculation but a genuine plan from the decision-making core. The Fed’s proactive public statements are essentially creating momentum for a possible policy shift.

Board member Milan candidly pointed out the current dilemma: the existing interest rate level has seriously deviated from the neutral zone, and the Fed is taking unnecessary risks in the employment market. In other words, if the current situation persists, the US economy could face greater instability. This is precisely why the decision-making body is beginning to consider more aggressive rate cuts.

However, there is a critical issue that needs careful consideration: in the context of the high US debt levels, is a 150 basis point rate cut truly feasible? The contradiction between debt burdens and policy space has become a focal point of market attention. The cryptocurrency market has always been highly sensitive to Fed policies. If the rate cut expectations materialize, it could bring new liquidity expectations to the market. Investors need to closely monitor subsequent policy developments and remain vigilant about the risks posed by market sentiment fluctuations.