Recently, the Fed's policy stance has triggered market fluctuations. The latest released minutes from the July meeting show that Fed officials have a tough stance on inflation control, with most officials leaning towards keeping the current policy unchanged, and even some officials suggesting further interest rate hikes. This hawkish position has put pressure on Bitcoin around the $113,000 mark.

The Fed's decisions are supported by economic data. The core PCE inflation rate remains above the target level of 2%, reaching 2.6%. At the same time, tariff policies have led to price increases in various goods, from electronics to furniture. More concerning is that long-term inflation expectations have warmed, and consumers seem to be adapting to the high-price environment.

At the Jackson Hole annual meeting, Fed Chairman Powell clearly stated that the average inflation targeting will no longer be adopted, and in the future, the focus will be on reducing the inflation rate to 2%, even if this may have a short-term impact on the labor market.

However, Powell's policy stance is not entirely hawkish. He acknowledged that economic growth has slowed from 2.5% to 1.4%, and consumer spending is weak. Although the job market has a relatively healthy unemployment rate of 4.2%, the average number of new jobs added per month is only 135,000, the lowest level since the pandemic.

This economic situation requires Powell to carefully balance between inflation control and employment protection. Although current policies tend to focus on controlling inflation, they also leave room for potential policy adjustments in the future.

For the cryptocurrency market, the Fed's policy direction is undoubtedly an important influencing factor. Investors need to closely monitor future economic data and policy signals to adapt to potential market fluctuations.