Assuming that the bond market is usually wrong in the short term in its forecast regarding the interest rate development of the central banks, we could theoretically assume that this will also be the case this time and that the Fed may even raise interest rates against all expectations in response to the rising inflation rates. This would kill two birds with one stone: it would put a spoke in the wheel of the excessive debt policy from Washington and at the same time massively shock its biggest opponent, the European Central Bank. All we hear these days from the ECB Tower in Frankfurt is whimpering begging for interest rates to be lowered soon. The eurozone is in a deep recession, and if we look at China's massive expansionary monetary policy, this would also be a blow to China as a business location.
Powell would be destroyed by the liberal press for hurting Biden's reelection chances. It would be fun to watch.
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Which is why it won’t happen
The Federal Reserve is supposed to leave interest rates unchanged during an election year.
Powell created a loophole in December by saying we expect 6 rate reductions in 2024.
Until “inflation” hits 2 percent, Powell cannot lower rates.
He will only increase rates if he is feeling “suicidal”
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I agree with half of what you said. No way he raises rates before the election. However, I can see him making the case that 2 1/2 or 2 3/4% inflation is close enough for a rate cut. The media will give him cover.
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That’s true
The media is already questioning the 2 percent target.
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Yep. Need to readjust now
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Perfect clown show... and we are watching this off distance.
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I Don't think Fed will do it. However if that's done, it will most likely put the brakes on Bitcoin Rally as well.
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yes, but i don't think it can boldly slow down global liquidity enough to disrupt the bitcoin rally. besides, it seems like bitcoin is kind of an asset for america, built up via ETFs etc maybe they have themselves on the balance sheet?
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10 sats \ 0 replies \ @Wumbo 16 Mar
This would kill two birds with one stone: it would put a spoke in the wheel of the excessive debt policy from Washington
One could only hope but I am not sure an increase interest payment on the US national debt will affect spending.
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Rarely can you 'win' in economies. This is because the underlying principle of cooperation is so important to outcome. If the US is too successful while our developed nation partners and enemies are desperately flailing, then other nations may blame us and look for new global solutions for leadership. And judging by Europe's need to over manage, this won't be bitcoin.
Good thing we are so proficient in stirring up conflicts to keep everyone dependent on our defense capabilities.
Anyway two things are known: US deficit spending will continue US military power will continue
Just siphon off what you can with speculative attacks on the dollar while we drive this cruise ship called America right off the edge of the world. We'll need resources to build the new world.
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