FED has spoken! Market will face QT [EN/DE]

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(Edited)

Screenshot from 2023-03-07 17-44-22.png

The inflation is not slowing down as expected by FED. The non-tightening of the interest rates in the last months facilitated the bullish sentiment of the markets, equity as well as crypto. The FED seems to have realized the market is not take them seriously about higher interest rate. FED is pretty likely to start quantitative tightening (QT) again. Check out FED's Powell Testimony in-detail view.

Here is the interest chart using TradingView. It is likely that FED will try to raise above 5.25% and maintain between the yellow lines (5.25%-6.50%).
Screenshot from 2023-03-07 17-46-54.png

Twitter sources show that market expects rates to above 5.5% for the rest of the year!
Screenshot from 2023-03-08 10-03-26.png

Not sure if raising interest rates will bring the inflation down, but it will surely move the markets significantly in the coming days. If S&P moves, crypto moves too!

Hang tight for the roller coaster in the coming days and the rest of March.
@cryptopi314


Deutsch Übersetzt mit www.DeepL.com/Translator (kostenlose Version)

Die Inflation verlangsamt sich nicht wie von der FED erwartet. Die Tatsache, dass die Zinssätze in den letzten Monaten nicht angehoben wurden, hat die Aufwärtsstimmung an den Märkten, sowohl bei Aktien als auch bei Kryptowährungen, begünstigt. Die FED scheint erkannt zu haben, dass der Markt sie in Bezug auf höhere Zinssätze nicht ernst nimmt. Es ist sehr wahrscheinlich, dass die FED wieder mit der quantitativen Straffung beginnen wird. Sehen Sie sich FED's Powell Testimony im Detail an.

Hier ist der Zinschart mit TradingView. Es ist wahrscheinlich, dass die FED versuchen wird, die Zinsen über 5,25% anzuheben und zwischen den gelben Linien (5,25%-6,50%) zu halten.
Screenshot von 2023-03-07 17-46-54.png

Twitter Quellen zeigen, dass der Markt für den Rest des Jahres Zinssätze über 5,5% erwartet!
Screenshot von 2023-03-08 10-03-26.png

Ich bin mir nicht sicher, ob die Anhebung der Zinssätze die Inflation senken wird, aber sie wird die Märkte in den kommenden Tagen sicherlich erheblich bewegen. Wenn sich der S&P bewegt, bewegt sich auch die Kryptowährung!

Bleiben Sie dran für die Achterbahnfahrt in den kommenden Tagen und den Rest des März.
@cryptopi314


The above content is for educational purposes only. It is not a financial advice.
Der obige Inhalt ist nur für Bildungszwecke. Es handelt sich nicht um eine Finanzberatung.

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Wenn Sie den Inhalt nützlich finden, denken Sie bitte daran, zu folgen und zu rebloggen! Es ist eine große Motivation 🤗.



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Isn´t a rate increase leading to more dollar stacking and less investments because loans become more expensive? So wouldn´t rate increases not rather suffocate the economy? Less investments -> less new jobs.
So why are they doing this? Fear of inflation? But wouldn´t it be more prudent to make less debts to counter inflation?

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(Edited)

@stayoutoftherz They see economy is pretty strong and will be able to handle higher interest rates. The unemployment rate is nearing all time lows, which strengthens their ground to increase the rates. As we know high inflation is not good for a country's debt, pensioners, and strength of the currency, the FED is adamant about bringing it down to 2%. In my understanding, they will continue on this path until something breaks such as housing market, unemployment rate, or the stock market, or all together!
I'll compare some of the macro metrics to shed some light on interest rates, recession, and unemployment rate in the next blog post. 😊

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They're under reporting inflation. And what do you expect when they create more than 50% of the entire money supply in less than a couple of years.

Something's gonna break, and they'll announce their solution. Thankfully we already have ours.

#Bitcoin #crypto

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The under reporting was rectified in the last months report. But surely, they can say in the next speech about updating the inflation numbers.

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Looking forward to FOMC speech and CPI numbers! The market is likely to react quite strongly.

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