1 / 8

The Fed’s Press Conference Reminded Us How Fluid Monetary Policies Are

Yesterday the Federal Reserve held a live press conference. The U.S. and the rest of the world tuned in anxiously to see what Chairman of the Fed, Jerome Powell, had to say. Many were flabbergasted by his statements while others expected nothing less. Hereu2019s a quick recap on the talking points.

Netcoins
Download Presentation

The Fed’s Press Conference Reminded Us How Fluid Monetary Policies Are

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Fed’s Press Conference Reminded Us How Fluid Monetary Policies Are

  2. Yesterday the Federal Reserve held a live press conference. The U.S. and the rest of the world tuned in anxiously to see what Chairman of the Fed, Jerome Powell, had to say. Many were flabbergasted by his statements while others expected nothing less. Here’s a quick recap on the talking points.  The Fed: Acknowledged the rising cost of goods  Plans to potentially increase interest rates earlier than expected (closer to 2023 instead of 2024) Continue monetary stimulus  Admitted inflation happened much faster than they predicted, potentially rising for awhile  The press conference reminded us how malleable monetary policies are in the traditional financial system and how precarious it can be to store wealth in it. 

  3. Inflation is Already at a New HighThe Fed controls the country’s money supply. They have levers in place to speed or slow the integration of dollars into the economy, depending on the outcome they want to see. While their target is to reach a long-term inflation rate of 2%, inflation is at its highest level since 2008. In fact, inflation was 5% higher in May 2021 than May 2020. 

  4. Chairman Jerome Powell believes that inflation rates will decrease over time, but not until we continue to see current levels or even higher levels of inflation. This is bad news for savers and investors who hold U.S. Dollars as they’ll see a loss in purchasing power over time.

  5. Like Chairman Powell said, we don’t know how much inflation will rise in the short to long-term. Or what will happen next in the economy.People are looking for a new system where certainty and predictability are a guarantee; and they’re finding it in bitcoin. For example, we know that everyday 900 bitcoin are released into the economy. Every four years that amount is cut by half. And we know there is no one person interfering with the monetary policy. It’s immune to the human emotions of greed, fear and control. 

  6. This is precisely why the entire world is looking to safeguard their hard-earned money by investing in bitcoin. People, companies and now small countries like El Salvador are betting on bitcoin. Read: El Salvador made bitcoin legal tender for their population and Panama is looking to make crypto legal tender.The world is no longer waiting for the U.S. Dollar to be their saving grace. They’re buying large amounts of bitcoin, which reduces the supply, and in theory, increases the price over the long-term. 

  7. It’s time to consider having a defensive strategy. Don’t wait for the price of bitcoin to rise. Buy the dip with Netcoins.caSOURCE CREDIT: https://netcoins.ca/blog/the-feds-press-conference-yesterday-reminded-us-how-fluid-monetary-policies-are/

  8. THANK YOU FOR WATCHING

More Related