“Beware of false knowledge; it is more dangerous than ignorance.” – Mark Twain ||
Hello, everyone! Wow, the end of January already… although I’m certain this was absolutely the longest January ever.
Below, I share what were for me the two highlights of the FOMC press conference on Wednesday, and what they mean for crypto.
I also look at what the Czech central bank’s interest in Bitcoin says about central banking.
The latest episode of Bits and Bips is out, in which James Seyffart, Ram Ahluwalia and I talk to Jim Bianco – you can see that here, or listen here (Spotify link).
IN THIS NEWSLETTER:
FOMC bookends
Central banks and BTC: it’s an age thing
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WHAT I’M WATCHING:
FOMC bookends
Buried in a relatively humdrum FOMC press conference were two gems of a question. In a perfectly symmetrical coincidence, they came at the opening and close of the session.
Focusing on the job
1) The first question went to CNBC’s Steve Liesman, who asked about President Trump – it turns out that Fed Chair Powell has had no contact with him as yet. This hasn’t stopped the President from making public statements undermining Fed independence, or from criticizing the Fed for not cutting rates faster. Yet Powell did not seem ruffled, nor interested in what the President has to say. This is encouraging.
It also sets the stage for a test of wills over coming months, especially as Chair Powell emphasized the usual patience and caution when it comes to the next move. Not only that, he also hinted that the next cut might be a while away. Throughout the press conference, Chair Powell used slight variations of the following phrase at least five times:
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