In her recent interview with Michelle Makori, the lead anchor and editor-in-chief at Kitco News, Dr. Nomi Prins, the esteemed American economist and financial writer, delved into the state of the U.S. economy. Prins suggested that the banking sector in the U.S. might continue to experience instability, and it’s quite plausible that the central bank could prolong the emergency Bank Term Funding Program (BTFP) introduced in March following the downfall of three major banks in the nation.

During Fed Chair Jerome Powell‘s recent press briefing following the Federal Open Market Committee (FOMC) session, Prins observed that certain inquiries hinted to her that the Fed might explore “other ways of the Fed loosening monetary policy before the second half of the year.” The economist noted Powell is “walking that really interesting tightrope,” with QE having evolved into “QE-Light” in recent periods.

“[Powell] did say he’s comfortable with the look, meaning that he’s comfortable with the pace of quantitative tightening,” she told Makori. “Now it’s important to note, that if you look at the H.4.1. reports that come out weekly from the Fed, that the quantitative tightening that is in play has actually been reduced, we didn’t see that much this month compared to what their target bond rolloff has been so QT is becoming much more QT-Light anyway.”

Prins highlighted an interesting inquiry directed at Powell, questioning if there exists a clear differentiation between the policy instrument of rate reductions and the strategy of quantitative easing (QE), or the act of injecting funds into the economy and bolstering liquidity for banks.

“[Powell] said those two tools could be separated and he also said that that was going to be a specific topic of conversation for the March FOMC meeting,” Prins remarked. “To me, that means we could see various forms of QE, for example, the Fed extending its Bank term lending program, which started last March when we had those three big bank failures. Past its March 11th date which is when it expires to another year, a further six months, or just further.”

The economist pointed out that the Fed’s BTFP has attracted “record takers” and mentioned how the failure of Citizens Bank in November went largely under the radar. Concurrently, as Prins conversed with Makori, shares of New York Community Bancorp (NYCB) have slid a great deal in value, and the credit agency Moody’s demoted NYCB bonds to “junk” classification. Prins elaborated that the trigger for implementing QE would probably be the collapse of additional banks.

“I do see the potential for a massive crisis in the banking sector. We are not out of the woods there. If that happens, it will be remedied by QE, and that will help this particular sector by creating liquidity,” Prins detailed.

Numerous market analysts concur that the U.S. central bank is poised to intervene again this year to prevent banks from collapsing. Arthur Hayes, the ex-CEO of the cryptocurrency exchange Bitmex, anticipates substantial quantitative easing from the Fed in response to distress within the U.S. regional banking sector and NYCB’s situation. Hayes posits that bitcoin (BTC) will gain from these bailouts and predicts its value will soar to $1 million as a result of the anticipated surge in money supply.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。