### The US FED raised their policy rate by another 75 basis points - the fastest in history. While there is pain in the short term, this is longterm bullish for global risk assets - including crypto.

 Like almost any other asset on the planet, crypto/digital assets are buffeted by the moves of the US FED. And, as expected by many (and echoed through the twitterverse), the FED rate hike was officially announced to be .75% (75 basis points) for November 2022. This rate hike makes it four months in a row of .75% rate hikes, the fastest pace ever seen. 

Federal Reserve Chair Jerome Powell began conference reiterating the goal of 2% inflation, and reminded everyone that price stability is their goal and the ‘bedrock’ of the US economy. While all eyes are on the rate hike, Mr. Powell also reiterated that the US FED is still reducing their balance sheet (selling assets) - an activity that will continue to put downward pressure on assets (with a spill-over effect to crypto). 

Mr. Powell considers sees the US labor market as still “out of balance, with demand substantially exceeding the supply of labor”; and, that prices are still high. We take this to mean that the FED is still far away from the much awaited ‘Pivot’. Still stuck between a rock and hard place, it seems that the US FED will keep removing money out of the US economy for a good number of months. 

Mr. Powell’s words could not be clearer: “we will stay the course”. At the question and answer portion, Mr. Powell confirmed that inflation expectations had been on their way up, earlier in the year but have since then gone back down. So, it appears that the FED quite clearly sees the effectiveness and necessity of what it is doing, and will keep doing so until the final result is achieved (2%). 

Mr. Powell also expressed mindfulness of household balance sheets and the housing market. This implies that if household balance sheets and the housing markets show problems, it may affect future rate policy decisions (together with labor statistics). 

For us at CryptoFlash Report, we believe the FED rate policy outlook (continuing increases) means the accumulation period of Crytpto (and other ‘risk assets’) will continue. There is still a lot of time to keep accumulating our favorite digital assets but, with a looming significant downside risk that will linger until a FED pivot is clearly on the horizon. 

Thus, sustainable cost averaging is still an attractive method for us at this time since nobody can really tell when the pivot will come; and, cost averaging still benefits from lower prices, if or when they come. We believe that consistent buying at a sustainable level has the potential to yield significant gains for those who can stomach the volatility. 

We also see the (.75% hike) move as long-term bullish. While we are seeing the fastest rate hikes in history, tightening has happened many times before and if done properly, will result in a return to a long period of economic expansion - something that will be really good for crypto. So far, it has been painful but it seems to be working, albeit slowly.

The US FED raised their policy rate by another 75 basis points - the fastest in history. While there is pain in the short term, this is longterm bullish for global risk assets - including crypto.

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