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A senior Fed official believes markets are still functioning properly, but said the central bank would “absolutely” step in if financial conditions become disorderly.<\/p>\n
The US Federal Reserve under Jerome Powell has developed a reputation for dragging its feet on implementing important policy changes. However, a top central banker has assured that the Fed is \u201cabsolutely\u201d ready to do whatever it takes to avoid a financial crisis, whether triggered by the US-led trade war or other adverse developments.<\/p>\n
Although the long-awaited \u201cFed pivot\u201d could still be months away, policymakers app<\/a>ear poised to gradually ease financial conditions, beginning last month when they reduced the redemption cap on Treasurys by 80%.\u00a0<\/p>\n Fed policy exerts a gravitational pull on global markets through US dollar liquidity, which has a direct impact on Bitcoin (BTC) and the broader cryptocurrency markets. In fact, the Fed\u2019s impact on crypto has only grown since the COVID-19 pandemic. Since then, Bitcoin has been highly correlated with liquidity \u2014 a fact that was reinforced by a 2024 academic paper by Kingston University of London.\u00a0<\/p>\n Read more<\/p>\n<\/p>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more News<\/a> articles, you can visit our General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n