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If the markets are underestimating inflation, then the Fed will need to be even more aggressive with the interest rate increases, meaning the price of speculati
by halpert 5y ago
If the markets are underestimating inflation, then the Fed will need to be even more aggressive with the interest rate increases, meaning the price of speculative assets like BTC will drop even more.
- rastapasta42 5y agoToo many people are invested in the speculative stock market, so I'm skeptical on whether the Fed has the courage to ruin American worker's 401k. If the supply chain issues persist, there's also a chance that raising interest rates will fail to deflate commodity and product prices, in which case we might be overestimating Fed's ability to control inflation. Let's hope China decides to stick with dollar as the reserve currency and doesn't decide to suddenly cut off the flow of goods, or things might turn very ugly.