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Federal Reserve official Collins just threw cold water on the idea of aggressive rate cuts anytime soon. Her take? With inflation still running uncomfortably hot, rushing into a series of cuts would be premature. She's basically pumping the brakes on market expectations that were getting a bit too optimistic about easing monetary policy.
This cautious stance matters because the Fed's rate decisions ripple through every corner of finance—including crypto. When central bankers stay hawkish about keeping rates elevated, risk assets typically face headwinds. Collins isn't alone in this thinking either; several Fed members have echoed similar concerns about declaring victory over inflation too early.
For traders watching macro signals, this reinforces the message: don't expect a dovish pivot until inflation data shows sustained improvement. The Fed clearly wants more proof before making any significant moves on rates.