Stagflation can hit the cryptomarket hard


The macroeconomic environment imposes its own conditions on the cryptocurrency industry. Investors follow every step of the Federal System and react immediately to any changes. The chief executive officer of the federal reserve bank of Minnesota, Neel Kashkari, recently gave market participants several reasons to worry. The expert claims that the current economic crisis has all the signs of stagflation.

According to cryptanalysts, stagflation combines several negative scenarios for the crypto market. For reference, stagflation will be marked by high inflation and unemployment. Recent reports on the labor market in the United States just indicate that unemployment in the States is actively growing. At the same time, the Fed cannot take control of rapid inflation.

Some experts suggest that it will not be possible to avoid stagflation in America. For example, Professor Nouriel Rubin of New York University noted that this economic phenomenon is already gaining momentum. At the same time, the Federal Reserve of Minnesota Neel Kashkari did not rule out the development of a transitional scenario.

The expert also emphasizes that the Fed is highly likely to tighten monetary policy, despite the deterioration of the labor market situation. In such conditions, the cryptocurrency segment will continue to experience strong pressure, experts emphasize.

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