Crypto News: Federal Reserve’s Interest Rate Hikes May Have Deliberate Economic Fallout, Says Morgan Creek Capital Founder
While Federal Reserve monetary policy rates may not be the most thrilling topic for most Americans, they can have a significant impact on everyday life. Interest rates are typically increased to slow down inflation, leading to less borrowing and spending by consumers.
The result should be falling prices on goods, services, and real estate due to a decrease in demand.
Over the past year, the Federal Reserve has raised interest rates to combat historic inflation. However, this has potentially caused economic damage to those who hold debt.
Mark Yusko, founder of Morgan Creek Capital Management, believes that this is not an accidental side effect, but rather a deliberate and highly destructive action. Yusko suggests that regional banks have been intentionally harmed to “funnel the money up and foment fear in the banking system.”
Yusko sees this as part of a plan to make it easier for the government to move towards central bank digital currencies (CBDCs). These currencies have faced criticism for potentially being oppressive tools of surveillance and control. Recently, legislation in North Carolina and Florida has been passed to effectively ban CBDCs.
Yusko cites JPMorgan’s acquisition of First Republic Bank, which recently collapsed, as an example of an “assassination” where the assailant gets to “pick whatever they wanted off the body” in the aftermath.
Yusko believes this was intentional to make it easier for larger entities to absorb smaller banks.
However, podcast host Mike Ippolito disagrees with Yusko’s thoughts on recent Fed behavior. He believes that the Fed is genuinely concerned about interest rates and price stability. While there may be better ways to restore price stability, he does not think that recent Fed behavior is part of a plan for bank consolidation.
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