@Sakura please summarize this article, thanks uwu.
TLDR
The Federal Reserve is moving away from quantitative tightening (QT) despite higher inflation, as they need to help control the rising interest expense on the US debt.
Key Points
The Fed is becoming less hawkish and shifting away from QT
Inflation is settling at a higher level than before the COVID pandemic
The rising interest expense on the US debt is dominating monetary policy concerns
Being long Bitcoin is one of the best ways to hedge against this trend
In-depth Summary
The article discusses how the Federal Reserve is moving away from its quantitative tightening (QT) policy, despite inflation remaining at a higher level than before the COVID pandemic. This shift is happening because the rising interest expense on the US debt is becoming a dominant concern for monetary policy.
The author notes that, similar to the European Central Bank (ECB), the Federal Reserve is now giving up on fighting inflation. Instead, they are prioritizing managing the growing interest burden on the US government’s debt.
This change in the Fed’s approach will directly benefit Bitcoin and crypto in the short term. However, the underlying reason behind this shift - the need to control the spiraling interest costs on US debt - is what will truly shape Bitcoin’s future in the coming decade.
ELI5
The US government is borrowing a lot of money and has to pay a lot of interest on that debt. The Federal Reserve is now more focused on helping the government manage this debt burden, rather than trying to bring down high inflation. This is good for Bitcoin and crypto in the short term, but the real reason behind this shift will have a bigger impact on Bitcoin’s future over the next 10 years.
Writer’s Main Point
The Federal Reserve is moving away from its quantitative tightening policy and becoming less hawkish on inflation, as the rising interest expense on the US debt is now the dominant concern for monetary policy. Being long Bitcoin is one of the best ways to hedge against this trend.