The US Federal Reserve is willing to use the extensive arsenal of financial policy tools to prevent financial and economic conditions that are rapidly deteriorating but only if the liquidity is drowned or the markets have become well, said a top middle banker.
In an interview with Financial periodsBoston fed president Susan Collins said the central bank will “be prepared” in backstop markets as needed.
Source: Walter Bloomberg
While generally understood that the Fed was always ready to act quickly to stop the market chaos, Collins’ comments came to the heel of Asset sales Throughout the stocks and bonds, which has raised concerns about the health of the US financial system.
In general, however, the Fed is “not seeing liquidity concerns,” Collins said. If that changes, policy manufacturers will have “tools to meet concerns about markets that work or liquidity,” he said.
The Fed Collins are pictured in an interview in December with Bloomberg. Source: Bloomberg Television
For investors, Collins’ comments can carry excess weight because he is a member of voting of this year’s Federal Open Market Committee (FOMC) —the 12-person panel responsible for setting interest rates.
While Collins and his fellow FOMC members voted to keep interest rates stable at their March meeting, the biggest takeaway is the central bank EXERCISE TO By reducing the redemption cap to the treasurys by 80%.
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Fed is moving in markets
The Federal Reserve policy conducts a gravitational pull in the global markets by the US dollar’s liquidity, or the ease of which the dollar can be used for investments and transactions. Watering has a significant impact on digital asset prices, including Bitcoin (Btc).
This is further corroborated by a 2024 academic Paper by Kingston University of London Professor Jinsha Zhao and J Miao, who ended the financial financial dollar “has (a) significant impact on bitcoin prices.”
The relationship was strengthened after Covid-19 pandemia, with liquidity conditions that cost more than 65% of bitcoin price movements.
“After the pandemya, (financial financial) is the most important determinant of Bitcoin price, which is more than the key steps of the Bitcoin network,” the researchers said.
Macro analyst Lyn Alden reached a similar conclusion when he called Bitcoin “a Global Liquidity Barometer” in a September article.
Alden described the relationship between the price of Bitcoin and the global M2, or the extensive measure of money supply to major global economies.
Bitcoin is trading in the same direction as global liquidity over 83% of the time. Source: Lyn Alden
Number Cointelegraph reported in early March, Increasing global liquidity and a rebounding business cycle have a history that has had a strong unpredictable power for the price of Bitcoin. Business and business trends suggest that BTC prices can be pointed out for a recovery in the second quarter.
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