The Federal Reserve continues its hawkish stance to curb inflation. The consumer price index for August revealed worse-than-expected inflation. The Fed reaffirmed its commitment to curbing inflation prices by moving forward with a jumbo hike of 75 bps. More importantly, Fed chair jerome powell seemed to move away from his past comments about a soft landing.
The cryptocurrency community is bracing for another collapse as prices continue to fall with now bottom. ethereum (ETH) fell below the $1.3K mark while Bitcoin (BTC) is swinging in the $18K – $19K range. In the last 7 days, most of the crypto altcoins have been trading in the red.
Is A Soft Landing Possible
The Fed moved forward with another 75 bps hike. More importantly, it is unlikely that the Fed is likely to pivot any time soon. Even positive trend market participants, like Marko Kolanovic, expect a 100 bps mega hike before the end of the year.
The Fed wants to attract the inflation level down to under 2%. Even the Fed’s prediction outlines it will take till 2025 to reach this target. Major macroeconomics expert, @MacroAlf, outlines on twitter that the 5 largest economies in the world are experiencing the fastest slowdown in credit creation. He does not believe a soft landing to be at all likely.
Lisa Abramowicz of Bloomberg Television outlines that Fed chair Powell is moving away from his prediction of a soft landing. Powell believes that stable prices are the fundamental elements of a functioning economy. The Head of currently worth Hindsight mutuals outlines that this is the worst FOMC of all. He describes that he questions the entire idea of a soft landing.
Is A Fall Possible
The likelihood of a fall increases by the day as the Fed continues its hawkish stance. The World Bank has already announced a warning for a fall as soon as the upcoming year. The United States has already had two consecutive quarters of negative growth. Specialists believe that it is extremely likely that a third negative growth quarter will be revealed.
Disclaimer: This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.