Mike Novogratz Warns of Credit Crunch in US and Globally — Expects Fed to Cut Rates ‘Sooner Than We Think’

Galaxy Digital CEO Mike Novogratz has warned of a recognition crunch successful the U.S. and globally. Emphasizing that “we are heading into a recession,” helium expects the Federal Reserve to chopped involvement rates “sooner than we think.”

Novogratz connected Global Credit Crunch and Recession

Galaxy Digital CEO Mike Novogratz shared his outlook for the U.S. system successful an interrogation with CNBC Wednesday. Comparing the existent marketplace information to 1 successful December 2018, helium said: “This reminds maine a batch of 2018, December, erstwhile the Fed had this thought of 1 past [interest rate] hike and, of course, it sent the marketplace into a tailspin, and they had to reverse it soon after.”

Noting that “information has changed dramatically” successful a abbreviated play of time, helium explained:

The commodity marketplace is telling you, the lipid marketplace is telling you that we are heading into a recession. We are going to person a recognition crunch successful the U.S. and globally.

Novogratz stressed that Federal Reserve Chairman Jerome Powell “should intermission and volition beryllium cutting rates sooner than we think.” He added: “That’s a immense displacement successful psychology. It’s got bitcoin (BTC) and ethereum (ETH) connected the move.”

The enforcement continued: “If determination was ever a clip to beryllium successful bitcoin and crypto — this is wherefore it was created, successful that governments people excessively overmuch wealth whenever the symptom gets excessively great, and we are seeing that.”

Responding to a question astir whether helium sees “the anticipation of a contagion” successful the U.S. banking strategy and globally, Novogratz affirmed: “There is contagion.” He added that radical larn their lessons and eventually, they volition beryllium relying connected conscionable 4 oregon 5 depository institutions.

“I deliberation Congress and the Fed are going to person to bash thing much melodramatic … oregon we’re going to spot changeless unit connected these determination banks and the full system,” Novogratz opined, concluding:

Now we’ve got a marketplace that’s going to spell into a recognition crunch, however bash banks rebuild capital? They lend less. You’re going to spot a recognition crunch happening successful the United States and that’s starting to get priced into the marketplace successful a melodramatic way.

What bash you deliberation astir the statements by Mike Novogratz? Let america cognize successful the comments conception below.

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