Simon Ng Mike Novogratz, CEO of Galaxy Digital, predicts a “credit crunch” in the United States and across the world. He is sure that we are moving into an economic decline. Due to this, he anticipates that the Federal Reserve will cut interest rates sooner than expected.
Mike Novogratz Speaks of Financial Struggles Ahead for US and Global Markets
Mike Novogratz, the CEO of Galaxy Digital, recently spoke to CNBC about his outlook for the U.S. economy. He said that now it reminds him a lot of December 2018 when the Fed (an important money organization) decided to raise interest rates and caused the stock market to fall. However, he also commented that information has changed a lot recently and this could be different from what happened last year.
The commodity market and the oil market say that we are going to have an economic slump (called a recession) and money will be more tight both here in the U.S. as well as all around the world. The head of the U.S. Federal Reserve thinks it is so serious that he is preparing to reduce interest rates, meaning finance costs for people borrowing money will be lower than expected – this has caused popular digital currencies such as bitcoin and ethereum to jump higher in value.
The executive said that creating Bitcoin and other digital currencies was a way for people to protect their money when governments make too much of it. When asked about if there’s any chance of this kind of problem spreading all around the world, Novogratz agreed that it’s possible. People will have to rely on only four or five banks in which to keep their money safe.
Novogratz said that Congress and the Fed will have to do something big or else banks and the whole system won’t be doing alright. He then mentioned that the market could soon become a “credit crunch” where it’s harder for people to get loans, which is already causing some worry in the U.S.
What is your opinion of Mike Novogratz’s statements? Let us know by writing it in the comments section!
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