As the tariff war between the US and China flares up day by day, the tension between the two countries has caused sharp declines in Bitcoin and altcoins.
While the market expects the FED to start reducing interest rates as soon as possible in order for Bitcoin and altcoins to rise again, Wall Street giants are calling on the FED to make an urgent interest rate cut.
But famed economist Nouriel Roubini, known as “Dr. Doom” for his accurate predictions about the 2008 global financial crisis, has issued a new warning for Wall Street.
Roubini, who is also a professor at New York University and a prominent Bitcoin skeptic, warned investors not to rely on the Fed to quickly resolve the financial market instability triggered by Trump's tariffs.
Speaking to Bloomberg, Roubini said investors should temper their expectations of a Fed savior and warned that investors expecting a swift Fed intervention could be disappointed.
FED Will Wait for Trump to Take the First Step!
The famous economist stated that FED Chairman Jerome Powell will intervene to stabilize the market, but will do so after Trump takes the first step and softens his rhetoric.
Roubini also said he expects the Fed to keep rates steady for the rest of the year once policy battles over tariffs subside and the U.S. economy avoids a recession.
He added that investors expecting the Fed to intervene quickly may be disappointed, and that we should not rely on the Fed to resolve the financial market instability caused by Trump's international trade tariffs. Powell is likely to wait until Trump softens his actions and then intervene to stabilize market volatility.
*This is not investment advice.
