Federal Reserve's rate cuts fail to curb inflation rebound; JPMorgan warns of mid-year price pressures next year

【CryptoWorld】Wall Street giant JPMorgan recently issued a thought-provoking warning: even though the Federal Reserve has started a rate-cutting cycle, the monster of inflation might not be done yet.

Specifically, JPMorgan expects the inflation rate to continue rising until June 2026, with a peak possibly reaching 3.5-4%. In other words, in the next more than six months, the effect of rate cuts may be overwhelmed by a rebound in inflation. Only by the end of the year is inflation expected to gradually fall back to the Federal Reserve’s 2% target.

The underlying logic is quite sobering: relying solely on rate cuts to stimulate the economy, while supply-side pressures, geopolitical risks, energy prices, and other factors are still pushing up prices. For investors holding crypto assets, what does this mean? Repeated inflation expectations will continue to boost the appeal of safe-haven assets, but at the same time, it could also prolong the high-interest-rate environment. The complexity of the market lies in the uncertainty of policy expectations—whether the Fed will pause or even reverse rate cuts due to the rebound in inflation—these are variables to watch closely in the coming period.