Powell: Rate Cuts Depend on U.S. Labor Market
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 1h ago- Rate Policy Stability: On January 28, 2026, Powell announced that the federal funds rate target remains unchanged at 3½ to 3¾ percent, emphasizing that future rate cuts will depend on labor market conditions, thereby ensuring economic stability and inflation control.
- Crypto Market Volatility: Powell's statement introduces uncertainty in the crypto markets due to labor market dependency, increasing short-term volatility for BTC and ETH as traders face shifting liquidity expectations.
- Economic Policy Impact: Powell indicated that future rate decisions will be influenced by labor market conditions and incoming data, with this policy stance aimed at stabilizing the labor market while supporting the 2% inflation target, potentially affecting macroeconomic and sector-specific factors.
- Monitoring Employment Data: Financial analysts recommend close monitoring of employment data, as it directly influences future monetary policy adjustments; historically, crypto assets like BTC and ETH respond sensitively to rate cuts, potentially stimulating DeFi and lending activities.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
