BitUnix analyst: Energy, finance, and global capital allocation constrain Federal Reserve policy space

BitUnix analysts pointed out that the volatility of Brent crude oil prices, the $400 million debt pressure in the United States, and the adjustment of Japanese capital allocation have put multiple constraints on the Federal Reserve's monetary policy space. The rise in energy prices has increased inflation stickiness, while the US fiscal deficit and financing demand have pushed up long-term funding costs. The policy changes of the Bank of Japan have also caused uncertainty in US bond demand, putting pressure on approximately $23.5 million of Japanese yen short positions to be replenished. (Source: Federal Reserve)