Why The Fed Will Be Cutting Rates by EOY223

We have another FOMC (Federal Open Market Committee) meeting this week – the occur every six weeks – and a decision is due on the next rate adjustment. There’s a 99% probability that the Fed’s discount rate will be raised to 4.50-4.75% from the current 4.25-4.50%. (That’s a .25%, or 25 basis point rate hike) 

But with a higher rate comes much higher national debt payments: 

Note the “tail” on the right of the graph; does that look sustainable to you? 

The Fed has done its job over the past year of destroying demand and lowering the pace of inflation. (caused most likely by runaway congressional spending) But they will never get the toothpaste back in the tube, and we are NOT going back down to 2% inflation again any time soon, unless we hit actual DEFLATION as Cathy Wood predicts. 

And the Fed funds futures bear this out; after peaking at 4.75-5.00% (which would be two quarter-point rate hikes in Feb and March) the Fed Funds rate actually DROPS in December to 4.50-4.75%:

All of this drama could be very beneficial to crypto and especially BTC during this time as the Dollar Index continues to get destroyed due to the de-dollarization of the “PetroDollar” due to Saudi policies, as they start to transition to the Yuan for oil.