Former Fed Vice Chair Warns: A Hawkish Rate Cut Is Possible, Don't Expect Constant Liquidity

【Crypto World】On the eve of the FOMC meeting, former Fed No. 2 Lael Brainard revealed an interesting stance—she said that if she were still in office, she might vote for a “hawkish rate cut” this time.

What does that mean? The official employment data is a mess right now, and she said she has to rely on private sources like ADP and RevelioLabs to judge (both showing job losses in the US). What the Fed fears most is the economy falling into a “layoffs → shrinking demand → more layoffs” death spiral. So her thinking is: cut rates one more time to stabilize the situation, then hold steady and tough it out for two years to push inflation back down to 2%.

To put it bluntly, it’s “a cut is a cut, but don’t expect me to keep cutting.” She emphasized that what ordinary Americans care most about right now is prices and inflation—which sounds like a warning to the market: don’t get your hopes up for sustained easing.

This kind of statement is not exactly good news for risk assets; the window for rate cuts may be much narrower than expected.