San Francisco Federal Reserve President Mary Daly Seeks Lower Inflation, Will it Impact Cryptocurrencies?

TheNewsCryptoPublished on 2026-02-19Last updated on 2026-02-19

Abstract

San Francisco Federal Reserve President Mary Daly emphasized the need to further lower inflation, despite the current rate of 2.40% being close to the Fed's 2% target. She highlighted the role of restrictive policies and AI in achieving this, while also expressing concerns about labor market vulnerabilities. Lower inflation could boost investor confidence and potentially benefit riskier assets like cryptocurrencies. However, the crypto market is currently experiencing volatility, with Bitcoin dropping below $67k amid broader geopolitical worries. The article notes that multiple factors influence crypto prices, urging thorough research before investing. It concludes by mentioning Donald Trump's ambition to make the U.S. a global crypto hub, despite ongoing challenges like trade tensions with China.

San Francisco Federal Reserve President Mary Daly has sought to further lower inflation. The statement aligns with the target range of 2%. But, it goes on to raise a question if there will be a rate cut, considering that it affects investment appetite in cryptocurrencies. US markets last closed higher, signalling a decent strength at a time of uncertainty.

Mary Daly on Inflation

The US January 2026 inflation rate is 2.40%, closer to the target mark of 2%; however, Mary Daly has said that there is still a need to further lower the inflation. The San Francisco Federal Reserve President has acknowledged that while Artificial Intelligence (AI) helps in that aspect, it is also the restrictive policy that makes things happen.

Inflation is not the only concern, she said during an event at San Jose State University. Mary also said that there is a need to check that labor market vulnerabilities don’t turn into labor market fragilities. Cutting the rate becomes important for investors to allocate their funds to riskier ventures, cryptocurrencies in this case.

Interestingly, Jeffery Schmid, Kansas City Federal Reserve President, earlier took a dig at rate cuts.

Impact on Cryptocurrencies

A lower inflation rate essentially helps portray a strong economy. Thereby instilling a sense of confidence among investors to broaden their respective portfolios. Currently, cryptocurrencies are still experiencing volatility, with BTC, as it appears, losing its momentum. The token has dropped to $66,873.53, below $67k, after losing 1.85% of its value in the last 24 hours.

The market has collectively lost 1.71% in the market cap with the FGI shifting lower to 11 points. Investors worry over ongoing geopolitical scenarios. This has sidelined a drop in inflation, which could have otherwise worked in favor of the crypto market.

Simply put, there are several factors that impact cryptocurrencies. It is important to do thorough research and risk assessment before crypto investments.

Will America Become a Global Crypto Hub?

Donald Trump committed to make the US a global crypto hub; however, challenges keep coming up for the country. A report by Reuters has highlighted China’s plan to dominate global trade in the times to come. The Asian nation is reportedly pursuing 20 FTAs, free trade agreements, as the US extends its tariff war.

Nevertheless, US stock markets closed higher earlier. S&P 500 and Nasdaq were up by 0.56% and 0.78%, respectively. Dow also saw a growth of 0.26%.

Highlighted Crypto News Today:

Kresus Secures $13M Strategic Investment from Hanwha Investment & Securities

TagsCryptocurrencyFederal ReserveInflation Rate

Related Questions

QWhat is the target inflation rate mentioned by San Francisco Federal Reserve President Mary Daly?

AThe target inflation rate mentioned is 2%.

QHow has the recent inflation rate in the US performed relative to the target?

AThe US January 2026 inflation rate is 2.40%, which is closer to the target mark of 2%.

QWhat was the recent price movement of Bitcoin as mentioned in the article?

ABitcoin dropped to $66,873.53, below $67k, after losing 1.85% of its value in the last 24 hours.

QAccording to the article, what is one reason cutting interest rates is important for the cryptocurrency market?

ACutting the rate is important for investors to allocate their funds to riskier ventures, such as cryptocurrencies.

QWhich US stock market indices closed higher, and by how much?

AThe S&P 500 was up by 0.56%, the Nasdaq was up by 0.78%, and the Dow saw a growth of 0.26%.

Related Reads

In Conversation with Ray Dalio: We Are Currently in an AI Bubble, with 1% of My Portfolio in Bitcoin

Ray Dalio, founder of Bridgewater Associates, warns in an interview that the current AI boom shows classic bubble characteristics, which could lead to significant economic downturns as seen in past cycles like 1929 or 2000. He explains that speculative enthusiasm, fueled by debt and overvaluation, often precedes a crash when rising rates or taxation force asset sales, causing widespread losses and recession. Dalio also outlines his "Big Cycle" theory, describing an approximate 80-year pattern where widening wealth gaps, massive government deficits, and shifting geopolitical power (like China's rise) create internal conflict and global instability. He emphasizes that we are in a late-cycle, transitional phase where traditional powers like the US and UK face decline. For personal wealth protection, Dalio advises diversification beyond cash into assets like stocks, bonds, real estate, and particularly gold, which he prefers over Bitcoin. While he holds about 1% of his portfolio in Bitcoin as a non-printable hard asset, he views gold as more secure from technological or governmental threats. Regarding AI's impact, Dalio believes it will disproportionately benefit capital owners, worsening inequality by replacing both physical and cognitive labor. He suggests that human intuition and emotional intelligence, combined with AI, will be key for future workers. On taxation, Dalio argues that wealth taxes are impractical and risk triggering asset sell-offs, reducing productive investment. He points to the UK as a cautionary example of debt, low productivity, and political strife. Geopolitically, Dalio foresees a more regionalized world, with the US showing weakness in prolonged conflicts like with Iran, akin to past imperial declines. The ideal outcome, he suggests, is coexisting powerful blocs (e.g., Americas, China-Asia Pacific) without major war.

marsbit2h ago

In Conversation with Ray Dalio: We Are Currently in an AI Bubble, with 1% of My Portfolio in Bitcoin

marsbit2h ago

Daily 7.2 Trillion KRW: Foreign Capital's Record Net Buying on Friday! Wall Street Says Headwinds for Korean Stock Fund Flows Have Subsided

South Korean stock market sees a dramatic shift in fund flows. On July 31, foreign investors made a record net purchase of approximately KRW 7.2 trillion in KOSPI stocks, marking a fundamental reversal from the persistent large-scale net outflows seen in previous months. This contributed to a significant narrowing of foreign net selling in July to KRW 9.8 trillion, down sharply from KRW 48.4 trillion in June and KRW 44.5 trillion in May. Simultaneously, domestic institutional pressure eased. South Korean pension funds and asset managers turned to a net buying position in July, purchasing KRW 1.0 trillion worth of KOSPI shares, contrasting with net sales in May and June. Market volatility is expected to be dampened by new financial regulations. Effective July 31, the Financial Services Commission tightened access for retail investors to single-stock leveraged ETFs by raising the minimum cash deposit requirement. Trading volumes for these products subsequently dropped to about 50% of their monthly average. Citigroup Research maintains its year-end KOSPI target of 10,000 points. The firm cites several supportive factors: the substantial easing of headwinds from capital outflows, a robust fundamental outlook for the semiconductor sector, historically low market valuations, strong economic fundamentals, and the potential for policy support from financial authorities if needed.

marsbit2h ago

Daily 7.2 Trillion KRW: Foreign Capital's Record Net Buying on Friday! Wall Street Says Headwinds for Korean Stock Fund Flows Have Subsided

marsbit2h ago

Breaking! OpenAI's Next-Gen AI Solves 10 Fields Medal-Level Problems

OpenAI's next-generation AI model Astra achieves breakthroughs in 10 long-standing mathematical conjectures. The results, including constructing the first known infinite, finitely presented non-sofic group—resolving a major question since 1999—and advancing the high-dimensional sphere packing problem beyond a 46-year-old barrier, are detailed in a 249-page paper. Key proofs have been formally verified using Lean 4. The AI also refuted a rigidity conjecture by Fields Medalist Alain Connes. According to OpenAI, generating these proofs cost under $2,000. Experts describe the findings as potentially Fields Medal-worthy and a landmark moment for both mathematics and AI, showcasing the model's ability to produce profound, human-like reasoning across diverse fields like group theory, geometry, and operator algebras.

marsbit4h ago

Breaking! OpenAI's Next-Gen AI Solves 10 Fields Medal-Level Problems

marsbit4h ago

How to Make Yourself Irreplaceable by AI Forever

This article argues that the primary threat from AI is not job replacement, but remaining trapped in "wage slavery"—financial dependence on employers. The path to becoming irreplaceable is not resisting AI, but becoming an "unemployable" individual who builds their own meaningful enterprise. The author identifies five key elements for this: Agency (acting without permission), Taste (judging what's worthwhile), Persuasion, Persistence, and Iteration. The solution is to stop being a "pawn" in someone else's game. To start, you must fundamentally change your identity and environment, then engage in rapid, real-world trial and error. While both coding and creating media (content) are powerful, content is more crucial. AI can generate assets, but true value lies in subjective, human-driven content that builds trust and narrative. The actionable advice is to carve out 15 minutes to answer foundational questions: 1) Uncover your "raw material"—what you know deeply or solve effortlessly. 2) Define your contrarian perspective—what common beliefs you think are wrong. The intersection of these answers is your direction. Finally, you must launch by publishing your first core idea immediately, using the feedback to iterate and develop the skills needed for a self-directed life and career.

marsbit4h ago

How to Make Yourself Irreplaceable by AI Forever

marsbit4h ago

Thanks to Dice Rolls, Bitcoin Keys Are Stored Offline, But Not Everyone Will Do It

The article discusses using dice rolls to generate secure Bitcoin wallet seeds, providing entropy independent of potentially flawed hardware random number generators. It explains that each fair dice roll offers about 2.585 bits of entropy, with around 50 rolls needed for a standard 12-word seed phrase and 99+ recommended for higher security. This method gained attention after a vulnerability was revealed in some Coldcard hardware wallets, where a faulty firmware RNG (dating back to 2021) compromised generated keys. The analysis notes that while a dice-generated main seed was safe from this specific flaw, other Coldcard functions (like creating paper wallets, backup keys, or passwords) could still be vulnerable if they used the defective RNG. The piece argues that while dice-based entropy is technically robust, the manual process is error-prone, tedious, and unrealistic for most new users, who might make mistakes in recording or inputting rolls. It concludes that while manual entropy generation should remain an option for advanced users, the long-term goal is to develop reliable, user-friendly hardware and software that securely generates randomness without requiring specialized knowledge. Coldcard users are advised to check their firmware version and replace any secondary secrets (like paper wallet keys) created with vulnerable devices, while also considering multi-signature setups with devices from different manufacturers for added security.

cryptonews.ru7h ago

Thanks to Dice Rolls, Bitcoin Keys Are Stored Offline, But Not Everyone Will Do It

cryptonews.ru7h ago

Trading

Spot
活动图片

Hot Categoriesright-arrow

Hot Tagsright-arrow