The famous economist Nouriel “Dr. Doom” Roubini is surprised that the US economy continues to run solidly, despite the US central bank’s aggressive interest rate increases. While other economies are now heading towards a recession, this is not yet the case in America. According to Roubini, this is a problem for the US central bank.
Problem for US central bank
“It’s surprising that, given the amount of economic tightening we’re seeing, some economies are staying afloat. But the most resilient economy is that of the United States.
The Eurozone is heading towards a superficial recession, while China is a structural problem. […] America is really the star of the show right now,” said Roubini.
This is less pleasant for the US central bank, because a growing economy means that there remains upward pressure on inflation and that interest rates may have to rise even further.
This is also not good news for the Bitcoin price.
What does that mean for Bitcoin?
The higher interest rates are already putting considerable pressure on the Bitcoin price. Let alone if the Federal Reserve (American central bank) has to raise interest rates above 6.0 percent; then you probably have the dolls dancing completely.
“It is possible that the US central bank will issue one or two more rate hikes. That could yield an interest rate of 6 percent in America. The more that happens, the higher the risk of at least a short and superficial recession,” Roubini said.
For Bitcoin, it is hoped that inflation will drop quickly and that central banks can take the pressure off the economy (and the market). A recession would be bad news, because people would lose their jobs and have to sell investments (and therefore Bitcoin) to stay afloat.
Free 10 euros worth of Crypto
Do you want to enter the crypto world and perhaps buy Bitcoin or another crypto? Then we have great news for you! Thanks to a special deal between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers receive an exclusive offer.
If you sign up for Bitvavo via the button below, you will not only receive 10 euros for free, but you will also pay no trading fees on your first 10,000 euros in transactions.
2023-09-11 07:20:29
#Famous #economist #claims #strong #economy #bad #news #central #bank
