Fun

Uncertainty Surrounds Federal Reserve’s Future Plans for Rate Hikes

News Feed - 2023-01-10 12:01:25

Uncertainty Surrounds Federal Reserve"s Future Plans for Rate Hikes


The U.S. Federal Reserve has raised the benchmark bank rate seven times during the course of 2022, leading many to question when the central bank will cease or change course. The Fed has stated that it aims to bring inflation down to the 2% target, and the increases to the federal funds rate are intended to move toward this goal. However, Zoltan Pozsar, a U.S. macroeconomist and observer of the Fed, predicts that the central bank will start quantitative easing (QE) again by summer. Bill Baruch, an executive at Blue Line Futures, a futures and commodities brokerage firm, anticipates that the Fed will halt rate hikes by February. Experts Weigh In on Possibility of Pausing Rate Hikes and Restarting Quantitative Easing


Inflation in the U.S. saw a significant increase last year, but has since slowed. After seven rate hikes from the central bank, investors and analysts anticipate that the Fed will change course this year. In an interview with Kitco News, Bill Baruch, president of Blue Line Futures, told Kitco’s anchor and producer David Lin that the U.S. Federal Reserve is likely to halt monetary tightening in February. Baruch pointed to the decrease in inflation and cited manufacturing data as one factor in his prediction. “History cautions strongly against prematurely loosening policy,” Jerome Powell told reporters in Aug. 2022. “We will stay the course until the job is done.”


“I think there is a good chance that we don’t see the Fed hike at all in February,” Baruch told Lin. “We could see something from them that would surprise the markets in the first week of February.” However, Baruch emphasized that markets will be “volatile,” but also will see a strong rally. Baruch stated that the rate hikes “were aggressive,” and he noted that “there were signs in 2021 that the economy was ready to slow.” Baruch added: But with the Fed hiking those rates right through, that’s what slam-dunked this market down. Repo Guru Predicts Federal Reserve Will Restart Quantitative Easing in the Summer Under the ‘Guise’ of Yield Curve Controls


There is some uncertainty among analysts as to whether the Federal Reserve will choose to raise the federal funds rate or pivot in its course of action. Bill English, a finance professor at the Yale School of Management, explained to bankrate.com that it is difficult to be certain about the Federal Reserve’s plans for rate hikes in 2023.


“It’s not hard to imagine scenarios where they end up raising rates a fair amount next year,” English said. “It’s also possible they end up cutting rates more if the economy really slows and inflation comes down a lot. It’s hard to be confident about your outlook. The best you can do is balance the risks.”



U.S. macroeconomist and Fed watcher Zoltan Pozsar, for his part, thinks the Fed will restart quantitative easing (QE) again by the summer. According to Pozsar, the Fed won’t pivot for a while and Treasuries will go under duress. In a recent zerohedge.com article, the macroeconomist insists the Fed’s ‘QE summer’ will be under the “guise” of yield curve controls.


Pozsar believes that this will happen by the “end of 2023 to control where U.S. Treasuries trade versus OIS.” Citing Pozsar’s prediction, zerohedge.com’s Tyler Durden explains it will be like a “‘checkmate-like’ situation” and ​​the impending implementation of QE will occur within the framework of dysfunction in the Treasury market. Tags in this story analyst, Benchmark Bank Rate, Central Bank, economic growth, economic indicators, economic slowdown, Employment, expert prediction, Fed Chair, Federal Funds Rate, Federal Reserve, Financial Crisis, financial stability, inflation, interest rates, Investor, jerome powell, macroeconomist, manufacturing data, market analysis, Monetary Policy, monetary policy tools, pivot, quantitative easing, rate hikes, Recession, Target, Treasury market, uncertainty, yield curve controls


What do you think about the Fed’s moves in 2023? Do you expect more rate hikes or do you expect the Fed to pivot? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. FTX Co-Founder"s Alleged Extravagance Comes to Light in Bankruptcy Court Documents NEWS | 5 hours ago Report Claims U.S. Prosecutors Investigate Hedge Funds in Connection with Binance Dealings  NEWS | 1 day ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitcoin, Ethereum Technical Analysis: BTC Climbs Back Above $17K, Hitting 3-Week High Next articleBiggest Movers: SOL up 22% as ADA Hits Highest Point Since November Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItToday"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits


As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether

News Feed

Grayscale launches new decentralized AI fund
Ana Paula Pereira7 hours agoGrayscale launches new decentralized AI fundThe fund is available only for accredited investors. Its basket includes native tokens from Bittensor, Filecoin, Livepeer, Near and Render.3280 Tota
Jesse Coghlan8 hours agoPentagon forms ‘Task Force Lima’ to map generative AI for US defenseTask Force Lima will look into how artificial intelligence can be used across the U.S. defense, including warfighting capabi
Tax Benefits for Bitcoin Businesses in Belarus Extended Until 2025
Tax Benefits for Bitcoin Businesses in Belarus Extended Until 2025 Tax exemptions for companies and individuals legally working with cryptocurrencies in Belarus will remain in plac
Pundit Sounds Major Crash Alarm For XRP Price As ’12-Year Cycle’ Comes To An End
Este artículo también está disponible en español. XRP has been forming a red bearish candlesince the beginning of February, which is a result of a price crash that took p
Aethir and APhone unveil 10x scaling solution slashing mobile user costs by 90%
Zoltan Vardai10 hours agoAethir and APhone unveil 10x scaling solution slashing mobile user costs by 90%The strategic partnership promises significant benefits for the users of the decentralized smartphone, including 90%
Solving the blockchain trilemma with decentralized scalability
Cointelegraph14 hours agoSolving the blockchain trilemma with decentralized scalabilityThis podcast is produced in collaboration with the Metis network and explores the role of layer-2 solutions in providing fast, secure
BlackRock’s iShares ETFs record $788M net inflow as Bitcoin bull run gathers pace
Arijit Sarkar25 minutes agoBlackRock’s iShares ETFs record $788M net inflow as Bitcoin bull run gathers paceOut of 10 approved ETFs, Grayscale Bitcoin Trust (GBTC) and Invesco Galaxy Bitcoin ETF (BTCO) were the only tw
Gold Prices Expected to Soar in 2023: Experts Predict Record Highs for Precious Metal
Gold Prices Expected to Soar in 2023: Experts Predict Record Highs for Precious Metal Gold is on the rise in 2023 and in the first week of the new year alone, the precious metal ha
Santander UK Limits Cryptocurrency Exchange Transactions, Bank Says Investing in Crypto ‘Can Be High Risk’
Santander UK Limits Cryptocurrency Exchange Transactions, Bank Says Investing in Crypto "Can Be High Risk" On Nov. 3, Santander UK, the subsidiary of the Spanish financial giant Ba
P2P Bitcoin Trading: Venezuela, Colombia Account for Over 23% of Total Localbitcoins Volume
P2P Bitcoin Trading: Venezuela, Colombia Account for Over 23% of Total Localbitcoins Volume A study revealed a rising trend in bitcoin (btc) volume trading acros
The $589 XRP Dream: Believers Aren’t ‘Delusional’ Enough, Expert Says
Este artículo también está disponible en español. A known market analyst sees the $6 per coin prediction for XRP crypto being claimed by some experts as too conservative.
Gareth Jenkinson13 hours agoP2P marketplaces need to become unstoppable, permissionless — Paxful co-founderA new project aims to build a peer-to-peer marketplace to facilitate censorship-resistant, permissionless tradi