People in the crypto world generally expect the Fed to cut interest rates, but the core signal of a rate cut is that the U.S. economy is facing challenges, differing only in the degree of severity.
It can be inferred that a 25 basis point rate cut is the optimal choice: this suggests that economic issues are not severe, which can inject liquidity into the market, resulting in relatively moderate increases, but may amplify the proportion of MAG7 stocks, leading to a market valuation bubble. On the contrary, if the Fed lowers interest rates by 150 basis points as described by Besant, it indicates that the economy is close to collapsing, a doomsday scenario.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
People in the crypto world generally expect the Fed to cut interest rates, but the core signal of a rate cut is that the U.S. economy is facing challenges, differing only in the degree of severity.
It can be inferred that a 25 basis point rate cut is the optimal choice: this suggests that economic issues are not severe, which can inject liquidity into the market, resulting in relatively moderate increases, but may amplify the proportion of MAG7 stocks, leading to a market valuation bubble.
On the contrary, if the Fed lowers interest rates by 150 basis points as described by Besant, it indicates that the economy is close to collapsing, a doomsday scenario.