Crypto Rally Faces Fed Warning as Inflation Concerns Linger

The cryptocurrency market showed tentative signs of recovery on September 29 as buyers emerged following last week's steep decline. However, the rebound remains fragile after Cleveland Fed official Beth Hammack issued stark warnings about persistent inflation pressures.

Hammack's comments during a CNBC interview highlighted Core inflation metrics remaining stubbornly above the Fed's 2% target for 54 consecutive months. The labor market's continued strength, with unemployment below 5% throughout 2024, further complicates the timing of anticipated rate cuts.

Market participants now await September's jobs report with heightened sensitivity. Consensus forecasts project 59,000 new positions - a potential acceleration from August's 22,000 gain. Such labor market resilience could delay monetary easing, creating headwinds for digital asset valuations.

Meanwhile, decentralized exchange Aster has surpassed Hyperliquid in perpetual futures trading volume. The stablecoin sector continues its expansion, with total market capitalization approaching the $300 billion milestone.