Bessent clarified the highly discussed "$2000 dividend" plan, stating that it is not a universal handout but targeted assistance for specific low-income groups. This doused overly optimistic market expectations that the stimulus would broadly boost consumption, leading investors to scale back inflation expectations driven by spending.
Meanwhile, Dallas Fed President Logan took a hawkish stance, explicitly saying that still-elevated inflation does not support a rate cut in December, extinguishing the last hopes for near-term policy easing. The twin headwinds depressed risk-asset bulls, with the crypto market also feeling the pinch. Major tokens like Bitcoin lacked upward momentum as the macro narrative shifted.
Analysts noted that the recent rebound in risk assets was largely built on expectations of fiscal stimulus and a dovish Fed pivot. With both pillars now shaken, bulls are struggling to find near-term catalysts, leaving crypto vulnerable to deeper corrections if rate-cut bets continue to unwind.