Fed’s Daly: Still have inflation above target, need to get it down

💡 DMK Insight

Mary Daly’s support for a rate cut signals a shift in Fed policy that traders need to watch closely. With the labor market showing signs of softening, this could lead to increased volatility in both the forex and crypto markets. A rate cut could weaken the dollar, making USD-denominated assets less attractive, while potentially boosting risk-on assets like cryptocurrencies. Traders should keep an eye on how this sentiment influences the broader market, especially if we see a shift in the DXY index. If the Fed moves forward with cuts, expect a reaction from institutional investors who might reposition their portfolios accordingly. On the flip side, if the market overreacts to Daly’s comments, we could see a temporary spike in volatility that presents buying opportunities for savvy traders. Watch for key levels in major currency pairs and crypto assets as traders digest this news, particularly any shifts in sentiment leading up to the next Fed meeting.