Crypto Braces For Another Crash As Fed Diminishes “Soft-landing” latest News

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The Federal Reserve continues its tough stance on curbing inflation. The consumer price index for August showed worse-than-expected inflation. The Fed reaffirmed its commitment to curb price inflation by moving forward with a massive 75 bps hike. More importantly, Fed Chairman Jerome Powell seemed to shy away from his earlier comments about the soft landing.

This Token Has Surged 20 In The Crypto Crash By CryptomarketBag

The crypto community is gearing up for another crash as the prices are now falling along the bottom. Ethereum fell below the $1.3K mark, while Bitcoin is swinging in the $18K – $19K range. Most of the altcoins have been trading in the red for the past 7 days.

Is a soft landing possible?

The Fed followed with another 75 bps hike. More importantly, the Fed is unlikely to pivot any time soon. Even bullish market participants like Marko Kolanovic expect a 100 bps mega hike before the end of the year.

The Fed wants to bring inflation down to below 2%. Even the Fed’s prediction shows that it will take until 2025 to reach this target. Leading macroeconomics expert, @MacroAlf, reported on Twitter that the world’s five largest economies are facing the sharpest slowdown in credit creation. He does not consider the possibility of a soft landing at all.

Lisa Abramowicz of Bloomberg TV reported that Fed Chair Powell Moving away from its prediction of a soft landing. Powell believes that stable prices are the fundamentals of a functioning economy. Head of Trading at Hindsight Mutual reveals that this is the worst FOMC of all. He explains that he questions the whole idea of ​​soft landing.

is recession possible

The prospect of a recession increases day by day as the Fed continues its aggressive stance. The World Bank has already issued a recession warning as soon as next year. The US has already had negative growth for two consecutive quarters. Experts believe that there is a high probability that the third negative growth quarter will emerge.

Nidhi is a technology enthusiast who aims to find elegant technological solutions to solve some of society’s biggest issues. He is a firm believer of decentralization and wants to work on mainstreaming blockchain adoption. He is also big on almost every popular sport and loves to chat on a wide variety of topics.

Crypto Braces For Another Crash As Fed Diminishes Soft landing latest CryptomarketBagCrypto Braces For Another Crash As Fed Diminishes Soft landing latest CryptomarketBag

The material presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication has no responsibility for your personal financial loss.

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