Economists Lower Recession Risk, Fed Rate Hikes to Impact Crypto Markets
Economists Lower Recession Risk, Fed Rate Hikes to Impact Crypto Markets
US economists have reduced their forecast for a recession to 25% while simultaneously raising inflation predictions. This shift suggests the Federal Reserve will have limited room to cut interest rates, likely maintaining a 'higher-for-longer' monetary policy. Such a stance is expected to remove a crucial catalyst for risk assets, including cryptocurrencies, which had been anticipating a recovery in the second half of the year.
US economists lowered their recession odds to 25% while raising inflation forecasts, according to a Wall Street Journal survey, leaving the Federal Reserve little room to cut interest rates this year. The shift matters for crypto markets. A higher-for-longer Fed removes the catalyst that risk assets had counted on for a second-half recovery. Survey Points