Fed Accelerates Tightening – Bitcoin and the Markets Go Green Again. Why? The Fed blew the whistle on the party, but more importantly ended the uncertainty. The markets like it.
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Everyone was waiting for Jerome Powell yesterday to hear about the decisions made by the FOMC after its December 2021 meeting.
What the markets were expecting happened. The Fed decided to accelerate tightening.
With inflation at 6.8% in November 2021 in America, the Fed could no longer continue with its ultra-accommodating monetary policy. Asset purchases will be cut in half to $60 billion by January 2022.
In late winter 2022 or early spring 2022, rates will be raised for the first time. Two more increases will follow in 2022, three in 2023, and finally two in 2024 in order to eventually return to key rates above 2%.
Faced with the end of the party whistled by the Fed, you might have imagined that the markets would turn red. Well, the opposite happened. The S&P 500 is back in the green near its ATH, and Bitcoin has seen its price return to green and is now above $49K.
And the rise is expected to resume in the days and weeks ahead.
Many are wondering why investors are returning to buying as the Fed has announced a more aggressive inflection of monetary policy.
In the latest issue of the In Bitcoin We Trust Newsletter, I answer this big question and more importantly try to tell you what it means for the Bitcoin price in the short term: [**https://inbitcoinwetrust.substack.com/p/fed-accelerates-tightening-bitcoin**](https://inbitcoinwetrust.substack.com/p/fed-accelerates-tightening-bitcoin)
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