{"id":18895,"date":"2023-03-19T04:43:15","date_gmt":"2023-03-19T04:43:15","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/mike-novogratz-warns-of-credit-crunch-in-us-and-globally-expects-fed-to-cut-rates-sooner-than-we-think-economics-bitcoin-news\/"},"modified":"2023-03-19T04:43:15","modified_gmt":"2023-03-19T04:43:15","slug":"mike-novogratz-warns-of-credit-crunch-in-us-and-globally-expects-fed-to-cut-rates-sooner-than-we-think-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/mike-novogratz-warns-of-credit-crunch-in-us-and-globally-expects-fed-to-cut-rates-sooner-than-we-think-economics-bitcoin-news\/","title":{"rendered":"Mike Novogratz Warns of Credit Crunch in US and Globally \u2014 Expects Fed to Cut Rates ‘Sooner Than We Think’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Galaxy Digital CEO Mike Novogratz has warned of a credit crunch in the U.S. and globally. Emphasizing that \u201cwe are heading into a recession,\u201d he expects the Federal Reserve to cut interest rates \u201csooner than we think.\u201d<\/strong><\/p>\n

Novogratz on Global Credit Crunch and Recession<\/h2>\n

Galaxy Digital CEO Mike Novogratz shared his outlook for the U.S. economy in an interview with CNBC Wednesday. Comparing the current market condition to one in December 2018, he said: \u201cThis reminds me a lot of 2018, December, when the Fed had this idea of one last [interest rate] hike and, of course, it sent the market into a tailspin, and they had to reverse it soon after.\u201d<\/p>\n

Noting that \u201cinformation has changed dramatically\u201d in a short period of time, he explained:<\/p>\n

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The commodity market is telling you, the oil market is telling you that we are heading into a recession. We are going to have a credit crunch in the U.S. and globally.<\/p>\n<\/blockquote>\n

Novogratz stressed that Federal Reserve Chairman Jerome Powell \u201cshould pause and will be cutting rates sooner than we think.\u201d He added: \u201cThat\u2019s a huge shift in psychology. It\u2019s got bitcoin (BTC<\/a>) and ethereum (ETH<\/a>) on the move.\u201d<\/p>\n

The executive continued: \u201cIf there was ever a time to be in bitcoin and crypto \u2014 this is why it was created, in that governments print too much money whenever the pain gets too great, and we are seeing that.\u201d<\/p>\n

Responding to a question about whether he sees \u201cthe possibility of a contagion\u201d in the U.S. banking system and globally, Novogratz affirmed: \u201cThere is contagion.\u201d He added that people learn their lessons and eventually, they will be relying on just four or five depository institutions.<\/p>\n

\u201cI think Congress and the Fed are going to have to do something more dramatic \u2026 or we\u2019re going to see constant pressure on these regional banks and the whole system,\u201d Novogratz opined, concluding:<\/p>\n

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Now we\u2019ve got a market that\u2019s going to go into a credit crunch, how do banks rebuild capital? They lend less. You\u2019re going to see a credit crunch happening in the United States and that\u2019s starting to get priced into the market in a dramatic way.<\/p>\n<\/blockquote>\n

What do you think about the statements by Mike Novogratz? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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

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Disclaimer<\/strong>: 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<\/a> 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.<\/p>\n<\/div>\n

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