According to a report from Jinshi, Federal Reserve Governor Michael Barr said that the current monetary policy is in a good state and may be maintained for some time. Barr serves as the Fed's Vice Chair for Supervision, and his remarks are often taken as important signals of the central bank's policy stance. With U.S. inflation still above the 2% target, the statement suggests that the Fed is unlikely to begin cutting interest rates in the near term, and high borrowing costs could persist.
As risk assets like cryptocurrencies are highly sensitive to interest rates, a prolonged period of elevated rates may dampen market sentiment and tighten liquidity, potentially curbing demand for digital assets.
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