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

TheNewsCryptoОпубликовано 2026-02-19Обновлено 2026-02-19

Введение

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%.

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TagsCryptocurrencyFederal ReserveInflation Rate

Связанные с этим вопросы

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%.

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