{"id":478592,"date":"2021-12-09T19:00:04","date_gmt":"2021-12-09T19:00:04","guid":{"rendered":"https:\/\/wncen.com\/?p=478592"},"modified":"2024-06-11T14:09:42","modified_gmt":"2024-06-11T14:09:42","slug":"more-downside-for-bitcoin-cpi-new-numbers-could-call-for-early-taper","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/more-downside-for-bitcoin-cpi-new-numbers-could-call-for-early-taper\/","title":{"rendered":"More Downside For Bitcoin? CPI New Numbers Could Call For Early Taper"},"content":{"rendered":"
The stock markets and Bitcoin’s price performance might be hitting a bumpier road after the next Consumer Price Index release. During the year the Fed has been clear about an upcoming tapering, and now that new \u2013and higher\u2013 CPI<\/a> metrics are expected, the taper is likely to fasten its pace and the markets to suffer.<\/p>\n The central bank is expected to start reducing its net asset purchase month by month by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities. This has raised fear over the traditional and crypto markets as prices are expected to be affected by a reduction in the global market’s liquidity. Previous tapering scenarios have seen yields fall and government bond prices rise.<\/p>\n <\/p>\n Costumers who have experienced the rise in prices this year have low expectations for the Consumer Price Index’s results to come. The red signals send a reminder of Jerome Powell’s previous words: “we are prepared to adjust the pace of purchases if warranted by changes in the economic outlook,”<\/p>\n Similarly, James Bullard, President of Federal Reserve Bank of St. Louis, had said in an interview with Bloomberg that they could “move faster” and speed of the taper “if it is appropriate”.<\/p>\n I think it behooves the committee to go in a more hawkish direction in the next couple of meetings so that we are managing the risk of inflation appropriately,<\/p><\/blockquote>\n Bullard’s comments followed the U.S. Labor Department October’s report of a 6.2% yearly rise in the consumer price index, a 31-year high. This “further aggravated the market\u2019s concerns about inflation, voices for accelerating Taper has become increasingly loud” said Huobi Research.<\/p>\n It is not the first policy retreat for the Fed, but it is seen as the most dramatic one, as it is a turnaround from unmatched support to financial markets. The general question now is whether it will look “appropriate” after the CPI report. If so, the markets are looking red to the experts.<\/p>\n <\/p>\n