As the US economy moves into even more uncertain times, the Federal Reserve’s upcoming reaction to poor inflation data will take place at Wednesday’s FOMC meeting. Interest rates are expected to remain where they are. Where does this leave bitcoin?
Fed between a rock and a hard place
PCE, PPI, and CPI inflation data are all rising, meaning that the Federal Reserve’s tightrope walk has become even more difficult. If inflation is about to raise its ugly head once more, and the US economy is about to enter recession, the Federal Reserve is very much stuck between a rock and a hard place.
Looser money policy is needed to help stave off the recession and provide fuel for the recovery, while at the same time, a reduction in rates is bound to throw fuel on the fire of inflation.
A no-win situation many would think. That said, with the US debt a towering inferno over the economy, inflation would help the US government to repay debt with cheaper dollars – which analysts call
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