JPMorgan: Bitcoin’s Record High May Prompt Fed to Postpone Interest Rate Cut

Translated by Sama Marwan,

JPMorgan believes that Bitcoin’s surge to record levels may prompt the Federal Reserve to postpone the planned interest rate cut.

The bank’s chief strategist, Marco Kolanovic, explained in a note that the bank may delay the interest rate cut, which is often a stimulus for risky assets, as it may cause another round of inflation.

He added that monetary policy may remain high for a longer period, as an early interest rate cut may lead to increased asset price inflation or cause another inflation spike.

Currently, the market expects, according to the CME FedWatch tool, the Federal Reserve to cut interest rates at least three times this year, with the first cut expected in June.

Global equity funds attracted net investments of $6.5 billion during the seven days ending March 6, supported by weak US industrial sector data as well as statements by Federal Reserve officials about interest rate cuts this year.

According to data from the London Stock Exchange Group, global equity funds saw net inflows for the second consecutive week.

Related Articles

Back to top button