{"id":16273,"date":"2023-01-09T19:59:03","date_gmt":"2023-01-09T19:59:03","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/uncertainty-surrounds-federal-reserves-future-plans-for-rate-hikes-bitcoin-news\/"},"modified":"2023-01-09T19:59:03","modified_gmt":"2023-01-09T19:59:03","slug":"uncertainty-surrounds-federal-reserves-future-plans-for-rate-hikes-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/uncertainty-surrounds-federal-reserves-future-plans-for-rate-hikes-bitcoin-news\/","title":{"rendered":"Uncertainty Surrounds Federal Reserve’s Future Plans for Rate Hikes \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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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.<\/strong><\/p>\n

Experts Weigh In on Possibility of Pausing Rate Hikes and Restarting Quantitative Easing<\/h2>\n

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<\/a> Kitco\u2019s 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.<\/p>\n

\"Uncertainty
\u201cHistory cautions strongly against prematurely loosening policy,\u201d Jerome Powell told reporters in Aug. 2022. \u201cWe will stay the course until the job is done.\u201d<\/figcaption><\/figure>\n

\u201cI think there is a good chance that we don\u2019t see the Fed hike at all in February,\u201d Baruch told Lin. \u201cWe could see something from them that would surprise the markets in the first week of February.\u201d However, Baruch emphasized that markets will be \u201cvolatile,\u201d but also will see a strong rally. Baruch stated that the rate hikes \u201cwere aggressive,\u201d and he noted that \u201cthere were signs in 2021 that the economy was ready to slow.\u201d Baruch added:<\/p>\n

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But with the Fed hiking those rates right through, that\u2019s what slam-dunked this market down.<\/p>\n<\/blockquote>\n

Repo Guru Predicts Federal Reserve Will Restart Quantitative Easing in the Summer Under the \u2018Guise\u2019 of Yield Curve Controls<\/h2>\n

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<\/a> to bankrate.com that it is difficult to be certain about the Federal Reserve\u2019s plans for rate hikes in 2023.<\/p>\n

\u201cIt\u2019s not hard to imagine scenarios where they end up raising rates a fair amount next year,\u201d English said. \u201cIt\u2019s also possible they end up cutting rates more if the economy really slows and inflation comes down a lot. It\u2019s hard to be confident about your outlook. The best you can do is balance the risks.\u201d<\/p>\n

\"Uncertainty<\/p>\n

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\u2019t pivot for a while and Treasuries will go under duress. In a recent zerohedge.com article,<\/a> the macroeconomist insists the Fed\u2019s \u2018QE summer\u2019 will be under the \u201cguise\u201d of yield curve controls.<\/p>\n

Pozsar believes that this will happen by the \u201cend of 2023 to control where U.S. Treasuries trade versus OIS.\u201d Citing Pozsar\u2019s prediction, zerohedge.com\u2019s Tyler Durden explains it will be like a \u201c\u2018checkmate-like\u2019 situation\u201d and \u200b\u200bthe impending implementation of QE will occur within the framework of dysfunction in the Treasury market.<\/p>\n

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What do you think about the Fed\u2019s 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. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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