Federal Reserve Adjusts Policy Framework to Tackle Inflation, Boosts Crypto Market

Federal Reserve Chairman Powell has announced that the central bank is currently reassessing its monetary policy framework. This review aims to adjust related language to enhance flexibility in addressing inflation and supply shocks. The review is expected to be completed within a few months. Powell highlighted that the April PCE inflation expectation stands at 2.2%, suggesting that efforts to contain inflation are effective. The current policy has achieved a "soft landing," resulting in a rare positive outcome. In response to more frequent and persistent supply shocks, the future framework will incorporate long-term structural factors and seek more flexible policy tools.

According to Bitunix analysts, the signal of policy adjustment helps stabilize market expectations and alleviate pressure from potential interest rate hikes. This environment benefits risk assets, including cryptocurrencies. With inflation stable and receding, and policy leaning towards accommodation, the crypto market presents a medium-term bullish case. Analysts advise monitoring whether Bitcoin (BTC) holds the $100K support level; if it does, $105K will serve as a short-term resistance level. In terms of trading, focus should be on Ethereum (ETH), ecosystem coins, and inflation-resistant tokens that are sensitive to policy changes.