The FED, which increased monetary expansion in 2020 and 2021 to eliminate the economic risks posed by Covid-19, started to turn down the taps with the economic recovery.
The signals given by the FED that it would tighten its monetary policy further caused the markets to make a selling start to the new year.
Bitcoin was also affected by the FED’s discourse and could not get out of the downtrend. Because November, when the peak of $ 69,000 was seen, coincides with the period when the FED started tapering.
While the expectation that the FED will increase interest rates after completely ending asset purchases in 2022, decreased the risk appetite in the markets, a report for 2022 came from Goldman Sachs.
Goldman Sachs economists stated that the FED could raise four interest rates in 2022 and that it would start shrinking its balance sheet in July at the latest.
The latest report, written by Janh Hatzius, drew attention to the recovery in the US labor market and the hawkish attitude of the Fed’s December meeting minutes.
In the report, “We are changing our forecast for balance sheet reduction from December to July, as risks point to an earlier period than before. During this period, inflation will likely remain well above the target. We added December to the rate hikes we expected in March, June and September.” expressions were used.