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The Federal Reserve is on the verge of accomplishing its goals.The World Bank predicts that a global recession will occur as a result of several countries’ aggressive global monetary policies. In order to reduce inflation, the US Federal Reserve has taken the lead in raising interest rates. Other central banks, including the ECB, have done the same. As a result, a recession is now a possibility for the<a href="https://www.coingabbar.com/en/cryptocurrency" rel="noopener noreferrer nofollow"> cryptocurrency sector.</a>FedEx, a corporation that specialises in shipping and transportation, notes that the slowdown in demand has become more severe. It demonstrates that the US economy is in a downturn. The company’s share has decreased by 16% as a result.<h3 id="strong-the-chance-of-a-recession-strong">The Chance Of A Recession</h3>It is the Federal Reserve’s responsibility to use monetary policy to counter unusual economic conditions. The Federal Reserve engaged in severe quantitative tightening in reaction to the skyrocketing inflation. It increased interest rates with three big increases that were 75 bps apart. Even though inflation levels have slightly decreased, the Fed has had trouble containing rising costs.The CPI for August shows worse-than-anticipated YoY inflation of 8.3%. As the market now expects a 100 bps increase, it strengthened the Fed’s aggressive attitude. According to a Bloomberg survey of experts, the Fed plans to maintain its target interest rate of 4% through 2023.Senator Elizabeth Warren of Massachusetts questioned Powell’s assertive position and emphasised that it could precipitate a recession without addressing the underlying source of inflation.<h3 id="strong-recession-s-effect-on-crypto-strong">Recession’s Effect on Crypto</h3><a href="https://www.coingabbar.com/en/crypto-currency/bitcoin-btc-prices-usd" rel="noopener noreferrer nofollow">The biggest cryptocurrency, Bitcoin,</a> was created in 2009 following the previous significant recession in 2008. Therefore, it is questionable how the recession would affect cryptocurrencies. Some experts claim that the stock market crashes when businesses struggle to turn a profit during a recession. As a result, crypto, which has a strong correlation with the overall market, will also experience difficulties.Others draw attention to the fact that during a recession, consumers will look to invest in other currencies as the dollar declines. Therefore, during inflation, the cryptocurrency market will flourish.

World Bank Issues Warning About Coming Recession, How To Protect Crypto?

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