Token_Sherpa
A central banker's recent essay raises a critical point: if the Fed continues slashing interest rates, monetary policy could edge into accommodative territory. And that's where things get thorny for inflation control.
The argument goes like this—push rates down too aggressively, and you risk losing your grip on inflation expectations. Markets start pricing in persistent price pressure. Once inflation psychology shifts, it becomes a headache to reset expectations later on.
This thinking matters for anyone tracking the macro backdrop behind crypto volatility. Rate decisions ripple through all as
The argument goes like this—push rates down too aggressively, and you risk losing your grip on inflation expectations. Markets start pricing in persistent price pressure. Once inflation psychology shifts, it becomes a headache to reset expectations later on.
This thinking matters for anyone tracking the macro backdrop behind crypto volatility. Rate decisions ripple through all as