Fed Should ‘Aggressively’ Be Cutting Rates, Investor Says Amid Jobs Report Release

•February 12, 2026

Fox Business — Bonds (section)•Feb 12, 2026

Why It Matters

Aggressive Fed cuts could reshape monetary policy, influencing equities, real estate, and crypto valuations, prompting investors to recalibrate portfolios.

Key Takeaways

•Fed's aggressive cuts could boost economic growth
•Lower rates may weaken dollar, lifting crypto demand
•Jobs data will test Fed's inflation credibility
•Pompliano links Bitcoin's store‑of‑value case to rate cuts

Pulse Analysis

The Federal Reserve faces a delicate balancing act as the latest jobs report shows continued employment strength while inflation pressures ease modestly. Historically, strong labor data has given the Fed leeway to consider rate reductions without sparking a recession. However, policymakers remain cautious, fearing that premature easing could reignite price gains. Pompliano’s call for "aggressive" cuts reflects a growing sentiment among some investors that the central bank’s tightening cycle may have overshot, and that a swift pivot could re‑energize growth without derailing the disinflation trajectory.

Market participants are already pricing in the possibility of rate cuts, with Treasury yields edging lower and the dollar showing signs of depreciation. A more accommodative stance would likely lift risk‑on assets, buoying equities and real‑estate valuations that have been pressured by higher borrowing costs. At the same time, a weaker dollar could enhance the attractiveness of alternative stores of value, particularly Bitcoin, which has historically performed well during periods of fiat currency stress. The interplay between monetary policy and asset allocation is becoming increasingly pronounced, prompting portfolio managers to reassess duration exposure and diversify into non‑traditional holdings.

Pompliano’s emphasis on Bitcoin ties directly into this macro narrative. He argues that lower rates diminish the opportunity cost of holding non‑yielding assets, thereby strengthening Bitcoin’s case as a hedge against currency devaluation. This perspective resonates with a segment of the crypto community that views regulatory clarity and mainstream acceptance as contingent on broader economic conditions. As the Fed’s policy path unfolds, the correlation between rate dynamics and crypto market sentiment will likely intensify, offering both challenges and opportunities for investors seeking to navigate the evolving financial landscape.