Gareth Soloway: What The Fed Said Confirms Everything
As expected, the Fed raised rates by 75 basis points and the markets reacted swiftly. All three traditional benchmarks finished more than 1.7% down, with the Dow, posting its lowest close since June 17, with the Nasdaq and S&P, respectively, at their lowest point since July 1, and June 30. Bitcoin is currently trading at $18,743.28, down 1.5% in the past 24 hours, while Ethereum is down 5.6% in the past 24 hours, trading for $1,2646.62.
The Feds decision did not come as a surprise, however, Fed Chairman Jerome Powell’s comments spooked the market more than the hard facts. In his press conference, Fed Chair Jerome Powell said U.S. central bank officials are “strongly resolved” to bring down inflation from the highest levels in four decades and “will keep at it until the job is done,” a process he repeated would not come without pain.
Analysts and pundits are starting to believe that the Fed can take this too far, and this can lead to an economic depression. In an interview on the Small Caps podcast, Trader and Analyst Gareth Soloway discussed what he sees in the aftermath of Fed Chair Jerome Powell’s commentary.
For quite some time, Gareth has been stating that the Fed is trapped and does not have many options unless they want to proceed into a depression. After hearing Powell’s speech, he believes the Fed might be stubborn enough to aggressively proceed with hiking rates to which Gareth believes, Bitcoin and other risk-off assets will thrive, as many will see it as a safe haven from all the political turmoil.
Watch the full unedited interview here ⬇ [Credits] 🙏
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