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Huobi HTX Analyst: Fed’s Hawkish Shift Rebuilds Policy Credibility

The Federal Reserve raised rates by 25 basis points at its September meeting, with all 12 officials voting in favor and the dot plot pointing to one more hike this year, Huobi HTX chief analyst Andy said. He said the Fed is rebuilding its anti-inflation credibility at any cost, with Chair Warsh prioritizing inflation control even as growth forecasts were raised and unemployment lowered. The stance pushed up Treasury yields and the dollar and pressured gold.

Original source

AI take

The unanimous vote and dot plot signal a Fed more focused on institutional credibility than on near-term growth risks, which matters for risk assets that had priced an earlier pivot. Higher Treasury yields and a firmer dollar tighten global liquidity conditions, a headwind crypto and other dollar-sensitive markets cannot ignore. The open question is whether this hawkish posture holds if growth forecasts start to slip, or whether credibility concerns fade once inflation data cooperate.

Generated by AI for reference only.

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