If FED to Cut Rates Today; it will Hedge Value for Bitcoin?

This article is produced following the blog posted by @jrcornel entitled “FED set to cut rates tomorrow ………” The main intention is not to come against or roughly to support blog. Rather to share my perspective with steemians about actions and results of US Federal Reserve (FED) expected to take interest rate cut today. Hedge 

Of course, the main reasons that dives me to prepare this post is that; @jrcornel has only considered effect of inflation which comes as the result interest rate cut to conclude situation in stock as well as in the crypto market

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As @jrcornel  tried to put in his/her post, if the FED becomes willing to cut interest rate, @jrcornel indicated “it would be bullish for Bitcoin” The writer justified lack of incentive to hold fiat currency creates inflation so that reduces purchasing power and that in turn brings market gain for cryptocurrencies specially for BTC.

However, In my perspective it is very important to make an overall rapid analysis to understand why this cut of interest rate is needed and why President Trump requested the Federal Reserve to cut interest rate ; down to zero or less. 

What does Trump wants to achieve as the result of this rate cut what will happen within the US and at Global level if FED set new monetary policy that support rate cut both in US and at Globe in large? Don’t you think that? 

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Yes, without justifying the philosophy behind cut of interest rate we could not fully able to make explain anything about the economy or make prediction about stock market or any of cryptocurrency prices.

The reason US Federal Reserve in making rate cut is because to weaken the value of USD against EUR or US most likely to follow European Central Bank interest rate cut made some time back. Accordingly, if the FED take action to cute interest rate things which will happen to the economy;  

1. Consumers: Discourage consumer saving behavior, Consumers become less interested to save and earn interest from their savings rather they prefer spending more of their income so that these consumer behavior creates high money circulation in the market, which in turn creates high inflation. Therefore, In a highly inflationary ECONOMY, it adversely affects the prices of stocks and also reduce cryptocurrency prices 

2. Investors and companies: On the other hand, rate cute make USD loss power against EUR; depreciate USD. This Exchange rate depreciation will make US companies become more competitive in the international market as their manufacturing gets more value and earn higher income. However, this will bring higher inflation in US in the future, which makes investors and companies, become more doubtful about the future performance of their companies so that stock price loss value  

conclusion 

Generally, my analysis is somehow different than that of you. If the FED makes cut of interest rate, down to zero or less, I expect it will adversely affect the stock market or will not support growth in cryptocurrency; even BTC at least in the short-run