The Federal Reserve and Continued Inflation Expectations

According to the latest survey conducted by the Federal Reserve, there is an indication that continued inflation and the possibility of prolonged high interest rates pose significant risks to the stability of the financial system.
The survey includes opinions from market participants, academics, and other contacts, and also points to geopolitical issues and the upcoming 2024 U.S. presidential elections as potential sources of economic shocks.

Content:

Inflation
Bitcoin
Oil

Inflation

The semi-annual survey was released on Friday as part of the Federal Reserve’s financial stability report. It aims to analyze leverage, risk, and other economic factors to identify potential points of disruption. Despite the strong increase in interest rates that began more than two years ago to combat inflation, the report indicates that the financial system has not yet been exposed to widespread risks. However, the resilience of the financial sector poses a challenge to Federal Reserve officials who are trying to slow down the economy to achieve the central bank’s target inflation rate of 2%.

Bitcoin

Bitcoin Halving on Last Friday:

The Bitcoin halving event, a significant occurrence in the cryptocurrency world, concluded last Friday, April 19. Additionally, BTC mining rewards were reduced from 6.25 BTC to 3.125 BTC. This event drew wide interest from various personalities in trading and investing, emphasizing the increasing scarcity of Bitcoin, considering it one of the toughest forms of currency in the world. With this halving, Bitcoin production will increase by only 0.85% annually, making it rarer than gold.

Oil

Oil records weekly losses close to 4%: West Texas Intermediate crude futures settled above $83 per barrel on Friday, recovering from previous losses, after Iran downplayed the significance of an Israeli attack on its territory, indicating it had no plan for retaliation. In a retaliatory move early on Friday, Israel launched a strike, leading to the interception of three drones by the Iranian air defense system over the city of Isfahan. Traders were tense in anticipation of Israel’s response to last weekend’s aggression, with tensions exacerbated by Iran’s warnings of attacks on its nuclear sites. Additionally, the United States imposed new sanctions on Thursday targeting 16 individuals and entities linked to Iran’s drone program. This measure is part of the U.S. efforts to retaliate against Iran for its recent attack on Israel. The European Union is also considering imposing new restrictions on Iranian oil. Brent crude fell about 4% during the week, after a 0.7% drop in the previous period.

The Federal Reserve and Continued Inflation Expectations

The Federal Reserve and Continued Inflation Expectations

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