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

• Mary Daly has sought lower inflation.
• Several factors, in addition to inflation, are known to affect cryptocurrencies.
• Cryptocurrencies have collectively lost 1.71% in the market cap.

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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