The White House and the Federal Reserve are at it again, hurling barbs across the aisle.
BlockBeats, September 24: At an event at Georgetown University on September 23, Kevin Hassett, director of the U.S. National Economic Council, questioned the Fed’s recent rate-hike decision. He said that the annualized rate of core inflation has recently approached 2%, so he does not understand why the Fed is still considering further hikes. For the market, statements like this are likely to reinforce the idea of “a shift toward dovish policy,” but the Fed’s dot plot and the officials’ messaging still lean hawkish, and the interest-rate path hasn’t been truly rewritten.
What’s more important to watch, though, is the U.S. dollar and Treasury yields. If long-end yields continue rising, the White House’s verbal sparring could quickly lose its ability to support risk assets like BTC and ETH; if yields fall, market sentiment around trades for improving marginal liquidity is more likely to persist. Do you think we should watch the U.S. dollar strengthen next, or first watch Treasury yields pull back?
Figure 1: The White House again questions the Fed’s rate hike · Source: partial screenshot of the page
Image source: https://www.theblockbeats.info/flash/368771
BlockBeats, September 24: At an event at Georgetown University on September 23, Kevin Hassett, director of the U.S. National Economic Council, questioned the Fed’s recent rate-hike decision. He said that the annualized rate of core inflation has recently approached 2%, so he does not understand why the Fed is still considering further hikes. For the market, statements like this are likely to reinforce the idea of “a shift toward dovish policy,” but the Fed’s dot plot and the officials’ messaging still lean hawkish, and the interest-rate path hasn’t been truly rewritten.
What’s more important to watch, though, is the U.S. dollar and Treasury yields. If long-end yields continue rising, the White House’s verbal sparring could quickly lose its ability to support risk assets like BTC and ETH; if yields fall, market sentiment around trades for improving marginal liquidity is more likely to persist. Do you think we should watch the U.S. dollar strengthen next, or first watch Treasury yields pull back?
Figure 1: The White House again questions the Fed’s rate hike · Source: partial screenshot of the page
Image source: https://www.theblockbeats.info/flash/368771
