Fed Tightening
Fed tightening is an economic policy employed by the U.S Federal Reserve to slow down inflation and control the money supply in the economy. It involves increasing interest rates, buying back government debt (bonds), and reducing liquidity of reserves held in banks with excess capital. By raising interest rates, it becomes more expensive for borrowers to take out loans which reduces their ability to spend on goods or services; this helps combat rising prices due to too much spending power within an economy.
When Fed tightens its monetary policies, investors often seek refuge from volatile markets by investing in assets such as cryptocurrencies which are not subject to traditional banking regulations that exist when dealing with fiat currencies like US dollars or euros. Cryptocurrencies offer a way for investors looking for safe havens during turbulent times – because they tend be less affected than stocks and bonds when central bank actions occur – though there can still be wild price swings associated with them due to speculative trading activity related events like news releases about potential regulation changes affecting digital tokens..
