FED pays out trillions of dollars
The Federal Reserve (FED) is pouring trillions of dollars into the United States economy to fight the coronavirus crisis. Richard Byworth, CEO of Hong Kong-based digital financial services company Diginex, says cryptocurrencies are becoming increasingly attractive to institutional investors.
Byworth argues that the Federal Reserve’s plans to hike inflation rates, coupled with the political uncertainties surrounding the upcoming presidential election, could lead investors to seek digital assets as a way to hedge their portfolios. In an interview with media partner Forkast.News, he said:
“I think that with the central banks we have come to a point where there is no going back. Obviously, Trump wants to be re-elected, he won’t let the Fed give up on easing monetary policy or printing money – and if you think of Bitcoin as a scarce digital asset, that’s something that’s really starting to raise awareness among investors wake up who want to hedge their portfolio with institutional and private investors.”
Recently, the US Federal Reserve has outlined plans to spend years seeking low interest rates and actively seeking higher inflation as it seeks to restore pre-pandemic levels of economic activity. Earlier statements by the FED and by economists suggest that an “average inflation rate” of over 2% annually would be tolerable.