Mike Novogratz has it I was urged Followers buying Bitcoin as pressure is increasing on Jerome Powell.
Powell faces hostile attacks because he is reluctant to cut interest rates, and some Republicans are urging him to step down.
FHFA Director Bill Prute is currently regularly targeting Powell to promote his firing. His latest social media posts accused Powell of lying during his Congressional testimony.
Novograts believes these are “moves in the Banana Republic” and will defend Powell.
Critics argue that reducing interest rates will help boost the US economy as Powell’s current stance causes borrowing costs.
At the same time, Powell and the Fed are willing to hurry to cut interest rates, as they are far above the central bank’s long-standing 2% target. Early speed reductions can exacerbate the problem of inflation.
The strong job count also gives more credit to Powell’s unwillingness to curb the benchmark interest rates from being reduced.
Amid this growing pressure, there are several concerns that the Fed’s independence could be weakened, and the market has rejected the idea of fired Powell earlier.
The head of the central bank emphasizes that interest rate decisions must be based on data instead of political bias.
Bitcoin supporters such as Novograts believe that undermining the credibility of the most powerful central bank will bolster the case of major cryptocurrencies.
Politicizing the Fed could lead to aggressive interest rate cuts, which would further weaken the dollar.
As reported by U.Today, Novogratz previously said that for Bitcoin, the passing of a drastic tax and spending bill is also bullish, given the addition of billions to the US deficit.
