#FED #Crypto
An interesting take from an economist: the Fed may be willing to raise rates now not so much because of inflation itself, but because of Wall Street’s reaction.
And this is where it gets interesting.
The Fed’s problem is that it has to fight inflation while also making sure the market doesn’t start thinking the Fed has lost control of the situation.
It’s a strange game: a dovish Fed — and the market starts expecting easy money and rallies. A hawkish Fed — and pressure hits stocks, Bitcoin, and other risk assets.
So right now, I’d be watching not only the rate decision, but also what Powell actually says afterward.
Sometimes a few words from the Fed Chair can move the market more than the decision itself.
#BTC #LONG vs #SHORT
An interesting take from an economist: the Fed may be willing to raise rates now not so much because of inflation itself, but because of Wall Street’s reaction.
And this is where it gets interesting.
The Fed’s problem is that it has to fight inflation while also making sure the market doesn’t start thinking the Fed has lost control of the situation.
It’s a strange game: a dovish Fed — and the market starts expecting easy money and rallies. A hawkish Fed — and pressure hits stocks, Bitcoin, and other risk assets.
So right now, I’d be watching not only the rate decision, but also what Powell actually says afterward.
Sometimes a few words from the Fed Chair can move the market more than the decision itself.
#BTC #LONG vs #SHORT
