Interest Drop Will Result in Next Year’s Inflation; Strategist Says
CoinEdition
Published Mar 26, 2023 03:16AM ET
Updated Mar 26, 2023 03:30AM ET
Interest Drop Will Result in Next Year’s Inflation; Strategist Says
- Jim Bianco commented that the sudden fall in interest rates would help cease the deposit flight and financial instability.
- Bianco added that it would however result in inflation the next year.
- It was reported that despite the massive withdrawal of deposits, the Fed called the banking system ‘sound’.
Jim Bianco, the President, and Macro Strategist at financial research institution Bianco Research LLC shared his opinion on the Federal Reserve’s interest relaxations to confront the current financial instability and turmoil. He posited that though the immediate drop in the interest rate helps cease the deposit flight, it could result in the next year’s inflation.
Notably, on March 26, Bianco tweeted via his official page that the sudden fall in the interest rates could create a “massive stimulus for the economy and push inflation to 9% next year”:
Interestingly, there were a variety of opinions among investors and traders regarding the withdrawal of deposits despite the sudden drop of crypto rates. Even the crypto exchange Binance CEO Changpeng Zhao came forward with the comment that “banks need crypto”, following the related reports and tweets.
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