Economics

Tariffs create a no-win situation by simultaneously slowing growth AND increasing prices. Put simply, the Fed cannot counter these effects without either worsening inflation or further dampening economic growth.

This leaves us facing a troubling scenario:

1. If the Fed reduces its balance sheet by letting bonds mature without replacement or selling Treasuries/securities, this tightens financial conditions when the economy is already vulnerable.

2. If the Fed raises the federal funds rate, borrowing costs increase across the board, potentially crushing growth when the economy is already decelerating.

Regardless of which path is chosen, increased market volatility seems inevitable. Crypto may actually become relatively more stable, and with inflation, crypto prices rise accordingly.​​​​​​​​​​​​​​​​.

Co-founder @ponder | @survey | Ex   | colinjohnson.io

Yeah it’ll cause strengthening of crypto in any scenario as global markets shift to freer trade. Pretty straightforward cause and effect

Love this dystopian bull posting out of you.

Maybe the great flippening wasn’t ETH/BTC but crypto/dollars

In uncertain times, crypto may hold up better than traditional markets, especially as inflationary pressures mount.