According to Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, there is an 80% chance that the US Federal Reserve will change its aggressive interest rate hike policy. Lee suggests that the reason behind this potential shift is the recent positive Consumer Price Index (CPI) numbers, which show a slowing down of inflation in America.
Lee pointed out in a recent CNBC interview that the latest inflation report in America is “very good,” and he expects the numbers to continue falling in the coming months. He believes this will lead to a revival in financial markets and believes it is the appropriate time for the Federal Reserve to halt its interest rate hikes. The US central bank has raised the benchmark 11 times between March 2020 and July 2023 in response to the economic crisis caused by the COVID-19 pandemic and other challenges.
Many experts have argued that if the Federal Reserve does indeed change its policy, it could potentially trigger a new rally in the crypto market, particularly for bitcoin. Figures like Mike Novogratz, the CEO of Galaxy Digital, and Anthony Scaramucci, the Founder of SkyBridge Capital, have expressed similar beliefs that a pause in interest rate hikes would lead to a resurgence in the market and a renewed interest in risk assets like cryptocurrencies.
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