The Feds, Feds Again, and Lastly The Feds
It appears that the fed is fed up with inflation, no pun intended. How so? This week the Federal Reserve has decided to spike interest rates by 50 basis points.
This is the largest increase since 2000 and the first time the Federal Reserve has increased interest rates since 2006.
Considering the recent inflation report has us up 8.6% for the month of March, these measures seem appropriate for an unordinary time period. The Fed has made it clear that it wants to keep the prices stable thus, bringing down inflation was one of its main priorities.
The Fed has heard the Message
“Inflation it too high” has been a rallying cry of the past couple of months. Consumer prices have increased 8.5% in March alone. Fed Chairmen Jerome Powell was quoted in a press conference saying, “Inflatoin is much too high, and we understand the hardship it is causing.” The recent interest hike makes that clear.
Another tool the Fed has at its disposal is decreasing its 9 trillion balance sheet. In other words, money will be injected out of the economy, thus increasing rates. I’ll let you be the math junkies and determine by how much.
Soft Landing
Many industry leaders and former Fed Chairperson have been critical at Chairman Powell’s ability to safely land the plane. In other words, it is going to be a difficult plane to land safely without hurting anyone.
JP Morgan CEO Jamie Dimon was cited saying a probability for a recession is at “33%”. Nevertheless, Chairmen Powell is determined to safely land this plane with his monetary policy skills. He cited a strong labor force and a robust businesses as the key to this. Only time to tell, but for now keeping an eye out in the markets is of primary importance.
What Does This Mean For Crypto
It is safe to assume that the upward crypto price continuatoin is on hold. With institutional money headed towards crypto within the last year, the crypto market is looking a lot like the stock market. It has followed similar patterns and reacted the same to the news.
For now, it is better to have a long-term investor mindset. I guess the 100k Bitcoin will have to wait for a couple of more years.
Unstoppable Force meets an Immovable Object
This week’s edition of Unstoppable Force meets an Immovable Object we have in one corner Roe v. Wade versus the pro-choice activits. This week documents released by Politico cited the Supreme Court’s decision to overturn Roe v. Wade.
So what does this gibberish mean? Basically, the decision whether abrotion should be legal or illegal will be left to States to decide, stripping away abortion rights for millions of Americans.
The Supreme court came out confirming the report and launched an investigation on the leak. They were also cited saying the leak does not reflect the final decision that will be made this summer.
Washington DC’s Reaction
Joe Biden criticized the draft opinion and said this could lead us down a slippery slope. During his presidential run he vowed to protect abortionist.
Sentator Mitch on the other hand, was more critical on the individuals who leaked the documents and supported that the culprits, if found, face criminal charges.
Other leaders, such as Gov. Newsom, vowed to protect the right to abortion in the state.
Corporate America’s Reaction
Crickets…
Going, Going, Gone!
There goes another $30 Billion towards the war efforts in Ukraine. Congress recently voted on April 28th, to passed legislation that would allow the US to send military aid to Ukraine on loan.
The revised 80 year old law was sent to the desk of President Biden where he is expected to sign it. This new support package will place emphasis on armored vehicles and heavy weaponry.
However, it has been shown before the military equipment endures the stress and cracks of combat. Due to this, the equipment often becomes inoperable or breaks down. Only time will tell whether this was a solid idea.
Final Thoughts
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