In particular, the Fed’s interest rate decision, which crypto money investors are eagerly awaiting, has been warned not to relax from the banks.
Fed movements, which are closely related to the global economy and cryptocurrencies, continue. The USA is working hard to strengthen the dollar against economic difficulties. The strengthening of the US dollar, on the other hand, puts the markets at risk of recession. In light of all these developments, investors expect the Fed’s decisions to soften. However, some big banks stated that the Fed’s slowdown does not mean that it will abandon its rate decisions.
Banks Warn: Pigeon Appearance Not Guaranteed
It was claimed, especially through social media channels, that the Fed’s interest rate policies would turn into a dovish appearance. The crypto, which usually pre-prices policy decisions from the USA, moved upwards this time.
The crypto side thinks the Fed will abandon the jumbo rate hike and be more lenient next year. However, some banks and data analysts pointed out that the rates have not yet met expectations.
Barclay’s credit research team shared their thoughts on rate hikes in its weekly note. According to Barclay, the Fed is not done yet.
In his memo published in Bank of America, he referred to the market’s desire for a pivot. Slower doesn’t mean lower, Bank of America said.
Hardman stated that the rate of Fed rate hikes may slow down, but this will be realized by spreading to a longer term.
Danske Bank has responded too early to the allegations that the Fed will soften. According to Danske Bank, the Fed will raise 150 basis points this year.
ING Bank pointed out that there may be a decrease in the tightening rate as of December. According to ING Bank, inflation has not been defeated yet, and even if there is a softening, these interest rate increases can be spread over the long term.
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