Crypto News

Donald trump wants to introduce negative interest rates

Bitcoin price stabiliziruemost after several days of price fever, which can strengthen the insistence of Donald trump to introduce negative interest rates.

The US President urged the fed to impose negative interest rates, which immediately caused a wave of criticism from financiers. Most analysts believe that this will cause a negative reaction from the financial markets.

Negative interest rates (NIRP) oblige banks to pay interest on the balance of available funds of the Central Bank. In fact, commercial banks are punished for the retention of excess cash in an attempt to get them to increase lending to businesses and consumers, obliging to pay with savings.

Such a policy is already in force in the EU. Trump believes that America needs to take similar measures.

Most financial analysts believe that the sharp increase in money supply can lead to inflation, reduce the demand for government bonds, and make investors look for alternative assets to preserve value, not depending on the policies of Central banks.

Negative rates will be another driver of the stock market. Against the background of destruction of traditional economy, major investors will start to actively seek alternative hedging instruments, including high-risk. Bitcoin, which has limited the issue in such a situation might look like a promising asset, the offer which is falling, and the demand for which is growing.

Subscribe to ForkNews Telegram


Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Please disable your ad blocker

We know you are here for the stories. Not the ads. But we need the ads to keep the lights on. So please whitelist