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Fed officials have shown significant divergence in their attitudes toward interest rate cuts. While there is a general consensus that cuts will ultimately be needed, there are disputes over the timing. According to Fed policy movement analysis expert Nick Timiraos, officials currently disagree on three key issues: when to restart interest rate cuts, what specific economic indicators are needed for support, and whether excessive caution might lead to missing the optimal moment for a rate cut.
This divergence has led to the formation of three different camps within the Fed. Although this Wednesday's meeting failed to reach a consensus on interest rate cuts, the market remains closely focused on Chairman Powell's press conference, hoping he will signal a possible rate cut in September. At the same time, the market is also watching whether other Fed officials will pave the way for potential interest rate decisions for the next meeting in the coming days.
The current economic situation is complex and volatile, with inflation pressure, employment market performance, and overall economic growth trends being key factors influencing the Fed's decisions. In this context, every action taken by the Fed will have far-reaching effects on the global financial markets, especially in the cryptocurrency market, such as Bitcoin.
In the face of such a delicate economic situation, the Fed's decision-making process will undoubtedly be more cautious. Investors and market participants need to closely monitor the statements of Fed officials and the upcoming economic data to better anticipate the future direction of monetary policy.