COINOTAG News reports that as the Federal Reserve prepares for the upcoming FOMC decision, former Fed Vice Chair Lael Brainard outlined a hawkish rate-cut scenario in a recent interview. With no official payroll release yet, she would lean on non-government data from ADP and RevelioLabs indicating softer US hiring.

She argued that, to avoid a self-reinforcing downturn and additional layoffs, policymakers might implement a rate cut and then hold steady, while signaling a commitment to reining in inflation to the 2% target over the next two years—what she called a hawkish rate cut.

This stance could influence crypto markets by shaping risk appetite and liquidity. A cautious, credible path to 2% inflation may support risk assets like Bitcoin and major tokens, while guiding stablecoins and DeFi flows. Traders should monitor Fed communications for macro cues.