The Fed Gets Trolled Over Their Response To Recession, Here’s Why
The crypto market saw a major selloff due to the hawkish stance of the Federal Reserve. Several key central bank officials gave speeches, speaking on a wide array of issues. However, the most important theme was the Fed’s response to the soaring inflation level.
Susan Collins of the Boston Fed, Loretta Mester of the Cleveland Fed, and Raphael Bostic of Atlanta all gave key speeches. More key officials including Fed chair Jerome Powell are due to give their views on the macroeconomic situation.
Almost every official is continuing their hawkish stance against inflation. However, many market participants are extremely unhappy with their responses. Experts believe that the Fed is ignoring the recession in the same way it ignored inflation in the early stages.
What The Fed Is Saying About Recession
The Fed officials continue to be adamant about their stance against inflation. Susan Collins of Boston believes that the Fed will need more hawkish measures to curb the stubbornly high inflation rates. She also believes that there will be job loss as a result of the process. Collins also highlights that a significant economic or geopolitical event can lead to a recession.
Bostic’s reasoning is that price stability is the precondition to maximum long-term employment. She hopes that the accompanying slowdown will be modest.
Neel Kashkari of the Minnesota Federal Reserve also takes up a restrictive stance. He is traditionally a dovish figure in the Fed. However, Kashkari reveals that the Fed will not make the mistake of cutting taxes when the economy weakens.
Raphael Bostic of Atlanta says that the central bank has a long way to go to curb inflation and Cleveland’s Lorretta Mester agrees.
The Fed Gets Trolled
Market participants are not happy with the Fed’s response. They believe that the central bank is underestimating a recession similar to when they claimed that inflation was transitory.
Professor Jeremy Siegel of Wharton gave a fiery speech on CNBC where he stated that the Fed has no idea about what it is doing.
- Bitget Partners With Google Developer Group On Hackathon To Support AI Innovation
- Can Cardano Save Kadena? Hoskinson Reaches Out After KDA Token Plunges 60% Amid Shutdown
- Analyst Turn Bullish with $400 SOL Target as Hong Kong Approves First-Ever Solana ETF in Asia
- Veteran Trader Peter Brandt Says “MSTR Could Go Underwater” If Bitcoin Repeats 1977 Soybean Crash
- BSC Meme Season Ends as PumpFun Surpasses Four Meme Amid $8M Inflows
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
