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US Federal Reserve Plans To Raise Interest Rates Over 400 BP

The US Federal Reserve is tightening and rising interest rates are having a major impact on the crypto market. Bloomberg analyst McGlone said earlier this month that bitcoin would outperform traditional stocks as interest rates rise. At the moment, however, Bitcoin doesn’t seem to follow Bloomberg’s predicted trend.

In fact, despite Bloomberg’s bullish view, Bitcoin and other cryptocurrencies are still crashing. For example, BTC and ETH bounced back after the Fed’s announcement, he fell 2%. But now it crashed again. BTC is currently trading below $19,000.

Bitcoin Trends Below $19,000, BTCUSDT On Tradingview.com

The Federal Open Market Committee of the Federal Reserve Board manages the economy during inflation and recession by controlling the country’s money supply. The Fed is maintaining the money supply through quantitative tightening and reserve easing. As a result, rising interest rates cause market volatility.

Inflation to fall to 2% by 2025, Fed says

The Federal Reserve revealed its plans to tackle inflation at the Federal Open Market Committee meeting on Thursday. The Fed’s 75bps rate hike is just the tip of the iceberg and he plans to raise it to 400bps by the end of 2022.

The August CPI showed inflation at 8.3% y/y, but the Federal Reserve expects inflation to ease to 2% by 2025. The Fed plans to bring inflation down to 5.4% by 2022 and 2.8% by 2023. The interest rate benchmark this year is 4x. Current rates are between 2.25% and 2.50%.

From September’s CNBN Fed Survey, Fed rate hikes will remain at their peak rate for 11 months. John Riding, Chief Economic Advisor at Breen Capital, commented in response to the inquiry.

Ryding said the Federal Reserve finally recognized the seriousness of the inflation problem. He believes the Fed’s rate of tightening is a “positive real policy rate.” The economist is advising the Federal Reserve to raise the current interest rate by 5%.

Of the 35 survey respondents, some economists, strategists and fund managers believe the Fed may have tightened too much, according to the survey.

Recession Hits Global Economy – World Bank

The World Bank says a recession will hit the global economy with financial policies like war on the global economy.

Northman Trader founder Svan Henrich believes interest rates next year will depend more on recession than inflation. He believes Federal Reserve Chairman Jerome Powell is following in the footsteps of Paul Volcker. Henrich also advised Powell to turn around before reaching the 40bps interest rate target. Paul Volcker is the former chairman of the US Federal Reserve Board.

Jerome declined to say much about the recession, saying he didn’t know how deep or when it would be. Meanwhile, the Federal Reserve has dismissed all speculation of a recession.

Everyone is eagerly awaiting the next release of inflation data from the Consumer Protection Index for September. In addition, the next Federal Open Market Meeting will be held on November 2nd.

Featured image from Pixabay, charts TradingView.com

US Federal Reserve Plans To Raise Interest Rates Over 400 BP

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