The FED will continue to rise despite the banking crisis, forecast the former Fed chief of Richmond
The FED will continue to rise despite the banking crisis, forecast the former Fed chief of Richmond
The former president of the Federal Reserve of Richmond, Jeffrey Lacker, is of the opinion that the Fed should and will hold on to the interest rate at its upcoming session in March and the subsequent sessions.
Despite a series of banking breakdowns this month, some of which were caused by rising interest rates, the ex-chair believes that more will be necessary to combat inflation.
The inflation battle continues
Such an increase would correspond to the market expectations cme fedwatch-tool shows that the markets impose a probability of 18.8 % so that no interest rate increases takes place.
"to pause now, a signal of concern would send and impart concern and convey that they know that things are worse than people think from the outside," said Lacquer. "I'll take Jay Powell seriously."
After the collapse of the Silicon Valley Bank in the early this month, the Federal Reserve took several measures to support the liquidity for the banking system and prevent further banking on.
Critics of their measures suggest that their measures reverse the majority of progress that they achieved last year when reducing the money supply. Bitmex co-founder Arthur Hayes called last week that he sees his new bank term funding program as a "newly packaged" form of quantitative loosening and an informal "pivot"
The billionaires Elon Musk and Bill Ackman recently called formally passes to sink the interest to stabilize the banking system. Lacker, however, believes that the "banking crisis" is not as serious as others would like. "My guess is that people postpone the insoles from one bank to the other ... The banking system as a whole will keep these deposits," he said called . "As a result, I don't see any dramatic change in the credit conditions." Lacker added that the Fed had "separate instruments" to address credit problems that do not contain any changes to monetary policy, the latter may only tighten inflation, as was the case in the late 1990s. Bitcoiner such as Jack Mallers, CEO of Strike, are still confident that the Federal Reserve will be forced to give up its struggle to reduce inflation to 2 %. In a conversation with CNBC on Monday, Mallers claimed that the US dollar entered a new era of an eternal inflation of 5 to 10 %. In a similar way, the former CTO of Coinbase, Balaji Srinivasan, $ 2 million $ bet Last week due to the hyperinflation in the next $ 1 million would reach 90 days. . hyperinflation on the march?
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