• Elon Musk has criticized the US Federal Reserve’s inflation policy as being “too heavy-handed”.
• The Fed has continued to hike rates even as banks feel the pressure and several collapses occur.
• Musk believes that this is causing other countries to move away from using the US dollar as a reserve currency.
Elon Musk Slams “Heavy-Handed” Fed
Tesla and Twitter CEO Elon Musk recently took to Twitter to criticize the US Federal Reserve’s inflation policy, calling it too “heavy-handed”. He noted that excess government spending was forcing other countries to absorb a significant part of US inflation, which in turn is leading them away from using the US dollar as a reserve currency.
Arthur Hayes Sees $1M BTC Price
Meanwhile, former BitMEX CEO Arthur Hayes believes that the economic decisions taken by the US are sending Bitcoin on a path towards $1 million. He notes that crypto markets remain sensitive to Fed cues on interest rate policy, particularly with inflation gradually coming down.
Shift Away From U.S Dollar Trade
Various countries have been enacting a shift away from U.S dollar trade, with China beginning to transact in yuan with foreign partners instead. This highlights how serious an issue it is for the greenback potentially losing its status as world’s reserve currency in future.
Musk: Serious Issue
Responding to a thread on dollar supremacy by Genevieve Roch-Decter (CEO of financial insights firm Grit Capital), Musk tweeted: “Serious issue…US policy has been too heavy-handed, making countries want to ditch the dollar.”
Bitcoin Sensitive To Fed Cues
The sensitivity of Bitcoin and crypto markets towards Fed policy indicates just how influential their decisions can be for people invested in cryptocurrencies such as Bitcoin and Ethereum (ETH). As such, it will be interesting to see how these markets react when/if more stringent policies are put in place by the central bank over time.