As long as the Fed raises interest rates, Online Blockchain CEO Clem Chambers expects markets to "break."
"If [the Fed] truly intends to drive out inflation, something needs to crack," he said. If they mean it, a massive crash will occur.
Must go wrong for the (FED) Federal Reserve's plan to eliminate inflation to fail.
Clem Chambers, CEO of Online Blockchain, investors should expect markets to "crack" as long as the Federal Reserve keeps rising interest rates. He proclaimed, "If [the Fed] genuinely does intend to drive out inflation, something needs to break." If they actually mean it, there will be a huge crash.
Stocks and cryptocurrencies, according to Chambers, are allegedly in the midst of a "oncoming storm" before a catastrophic crash in 2022 following significant value declines.
Everyone is aware of the 2008 recession's significant collapse. He contrasted the bear market that occurred in 2007 to a storm. A producer and presenter for Kitco News, David Lin, told Chambers that he believed the current situation would be the beginning of a storm.
Elon Musk has already claimed that the US Federal Reserve's planned rate hike will make the recession worse.
The Fed has increased interest rates by 375 basis points since the start of 2022. The four most recent rate rises, however, each amounted to 75 basis points.
The FED is anticipated to hike interest rates by 50 basis points (bps) at its forthcoming meeting, ending an unusual run of four 75-bps increases meant to combat excessive inflation. This prediction was made by Jerome Powell. According to Deepak Agrawal, Chief Investment Officer, Debt Fund, Kotak Mahindra Asset Management Company, continue to expect a 50 basis point rate hike and a final Fed Funds target rate in the range of 4.75-5% at the mid-December 2022 FOMC meeting.
The Fed's decision to raise rates from 75 to 50 basis points was expected. The Fed FOMC minutes that were just made public showed a slowing in the rate hiking plan.
The possibility of a less significant half-point hike this month was confirmed by Fed Chair Jerome Powell during his final public appearance before the December meeting. At a Brookings Institution talk on November 30, Powell said, "It makes reasonable to limit the pace of our rate hikes as we approach the level of restraint required to drive inflation down.
It's possible that the markets haven't fully absorbed the Fed's plans to keep interest rates high. Rates are expected to reach their peak at 5-5.25% by the summer of 2023 before dropping to 4.5-4.75 percent by December, according to investors. In contrast, John Williams, the president of the New York Fed, stated in a significant speech prior to the December meeting that no rate decreases are anticipated until at least 2024.
According to experts, those hopes are more than just wishful thinking; they are influenced by the past. The majority of experts foresee difficulty for the US economy in 2019, despite a Bank rate survey of economists placing the likelihood of a recession by mid-2024 at 65%.
