The Federal Reserve's Balkin recently sent an important signal: the current interest rate has entered the neutral zone. What does this mean? Simply put, the policy level is "insuring" the economy.

Let's review the background: After the Fed cut interest rates by a total of 75 basis points in 2025, the policy focus shifted from large adjustments to fine-tuning management. But the problem is, the economic recovery has not been as smooth as expected. PCE inflation remains at 2.8%, still some distance from the 2% target; meanwhile, employment data appears robust, but hiring growth is slowing, and this "hot and cold" situation hides dual risks.

For investors in mainstream cryptocurrencies like SOL and ZEC, the key question is: will the Fed continue to cut interest rates? The pragmatic answer—probably not a large cut. The Fed needs to find a balance between inflation and employment, avoiding inflation rebound while preventing excessive rate cuts from harming economic growth. This "tightrope walk" policy stance suggests that the market should not overly bet on rate cuts.

Looking ahead to 2026, tax cuts, rate reductions, and possible regulatory easing may become growth drivers, but concerns such as high industry concentration and weak market sentiment remain. Overall, a cautious optimism is a reasonable attitude—closely monitor data and avoid preset paths.