Reserve

Biden

<p style="text-align: justify">In the middle of 2021, the Fed said that inflation was temporary, but probably didn’t believe it. Now, investors want to believe that the Fed does not believe it when they say that inflation is sticky. However, the famous billionaire thinks that excessive optimism will not benefit anyone and that the Fed will not deviate from its path. The delay in interest rate cuts will be a big disappointment for <a href="https://coin-turk.com/dunyaca-unlu-ceodan-kripto-paralara-yon-verecek-senaryo-sonuclari-ne-olacak" data-wpel-link="internal">cryptocurrency</a> investors.</p> 
<h2 style="text-align: justify" id="petroleum-and-cryptocurrencies">Petroleum and Cryptocurrencies</h2> 
<p style="text-align: justify">Billionaire venture capitalist Chamath Palihapitiya is also famous for his evaluations, which include cryptocurrencies. We have witnessed more of his statements on cryptocurrencies in the last 2 years, but they were mostly related to expectations of a decline. And he was not wrong. <a href="https://en.coin-turk.com/a-crypto-analyst-warns-of-a-potential-decline-in-the-us-dollar-index-dxy/" data-wpel-link="internal">Cryptocurrencies</a> have suffered significant losses in the meantime.</p> 
<p style="text-align: justify">Now, Chamath Palihapitiya is focusing on Fed policy. According to him, we will see inflation rise again due to the increasing oil prices in the midst of the escalating war between Israel and Hamas. Yesterday evening, Yellen also said that she would take the necessary steps to bring down oil prices to $60.</p> 
<h2 style="text-align: justify" id="oil-and-cryptocurrencies">Oil and Cryptocurrencies</h2> 
<p style="text-align: justify">Referring to The Kobeissi Letter’s data, the billionaire said that the US strategic oil reserve was at an extremely low level. According to him, it is not very possible for the US government to increase supply to slow down rising prices.</p> 
<blockquote> 
 <p style="text-align: justify">“When it seemed like oil would reach $100, Biden emptied the SPR (Strategic Petroleum Reserve) to help lower the US CPI (Consumer Price Index). Now, with two hot wars (Israel-Hamas and Russia-Ukraine) and OPEC’s (Organization of the Petroleum Exporting Countries) production cut of 1.5 million barrels, how will the oil that is at the SPR level of the mid-1980s not rise again?”</p> 
</blockquote> 
<p style="text-align: justify"><img decoding="async" class="size-full wp-image-264814 aligncenter" src="https://coin-turk.com/wp-content/uploads/2023/10/ABD-Stratejik-Petrol-Rezervi.png" alt="" width="710" height="495"></p> 
<p style="text-align: justify">According to The Kobeissi Letter’s data, the strategic reserve has declined to a 17-day supply. Therefore, the US has little contribution to supply, except for delaying OPEC cuts. Moreover, with the possibility of Israel directly targeting Iran, it will become much more difficult to keep oil prices stable.</p> 
<p style="text-align: justify">Fuel prices are one of the most important items in inflation, and the price of oil is directly linked to the rise of US inflation. Federal Reserve policy is also directly linked to inflation. We know that there is a direct connection between the Fed and <strong>cryptocurrencies</strong>. Therefore, the result is that if oil rises, cryptocurrencies may fall.</p> 
<p style="text-align: justify">According to Palihapitiya, the situation in the oil market will prevent the <strong>Fed</strong> from cutting its benchmark interest rate in the near future.</p> 
<blockquote> 
 <p style="text-align: justify">“What will the Fed do if inflation rises again? The Fed is already playing a game of cat and mouse with the bond market and is under great pressure not to cause any damage and ideally start a rate-cut cycle soon. This makes this path much less likely.</p> 
 <p style="text-align: justify">It’s dizzying that so many things are loosely connected to each other and affect everything else.”</p> 
</blockquote> 
<div class="sorumluluk_reddi" style="text-align: justify">
 <strong>Disclaimer:</strong> The information in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and therefore carry risks, and should conduct their transactions based on their own research.
</div> Continue Reading: <a href="https://en.coin-turk.com/will-the-fed-cut-interest-rates/" data-wpel-link="internal">https://en.coin-turk.com/will-the-fed-cut-interest-rates/</a>

Will the Fed Cut Interest Rates?

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