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Drawing parallels to previous financial crises, the investor suggested that significant economic downturns often lead to expansive monetary policies, such as rate cuts and quantitative easing. The markets, they noted, thrive in the aftermath of such interventions, as liquidity floods into the financial system, propelling asset prices upward.
Inflation and the Fed's Response
Central to the investor's argument is the relationship between inflation rates and Federal Reserve policies. With inflation figures recently reflecting a downward trend, the potential for rate cuts may soon materialize. The correlation between falling inflation and the actions of the Fed could pave the way for greater investment in crypto assets.