This inflation just does not seem to be willing to let go of its stranglehold on the world economy. And we might be in for some more turbulence come to the end of the year.
The talk as of late is that the fed is looking to make yet another 75-point rate hike come November. The idea behind it is the same as with the previous ones, cool down the economy and try to wrestle inflation back under control. But I have to say it is starting to feel more and more like we are on Santa's naughty list and these rate hikes are the lumps of coal we get in our Christmas stockings.
This will mark the fourth consecutive rate hike of 75 points, which is 0.75% for us normal people, are anything to judge things by. Things will get rather turbulent at the time of the announcement. So be prepared that there might be a crypto-wide drop coming.
At this point, these rate hikes are starting to feel like upgrading Windows, takes forever and the % keeps increasing ever so slightly
The crypto markets have however tried to price in these rate hikes, and it might be the market is getting better and better in doing so. Meaning the drops hopefully will be smaller than the previous ones.
Hopefully, the feds will not overdo these rate hikes. In the same way, they overdid the stimulus package during the pandemic. Of course, the stimuli pack was only one part of the puzzle. But these things sometimes take time to show their full effect. And if the government officials are impatient they can stack another rate hike on top of one that has not had its full effect. Meaning they might overdo it, and that of course will have an adverse effect too.
The "experts" say that the fed should stop hiking the interest when the inflation is halved. But again, easy to get carried away.
What are your thoughts on these rate hikes, are the fed overdoing it, or are they on the money? Please sound off in the comments down below. If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead.
See you on the interwebs!
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