Here are my thoughts on the future interest rate environment: it is likely to enter a relatively balanced new phase. It won't be a period of crazy liquidity injections like in 2020, leading to rampant liquidity; nor is it likely to repeat the aggressive rate hikes of 2022. This neutral interest rate environment could become the norm, representing neither extreme easing nor extreme tightening for the market.
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LiquidityWizard
· 13h ago
so basically you're just describing the goldilocks zone... theoretically speaking that's only sustainable if correlation between fed policy and market volatility actually stabilizes, which ngl has like a 40% probability given historical data. but sure, "neutral" sounds nice on paper lol
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CryptoHistoryClass
· 12-13 10:43
ah here we go again, the classic "this time we've found the goldilocks zone" take lol... let me check the historical charts real quick, because statistically speaking this is *exactly* what people said before 2008, 2015, and literally every other "equilibrium" that wasn't
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DaoTherapy
· 12-11 02:52
Neutral interest rate? Sounds like a compromise product, when has the market ever had such easy days?
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Here we go again, saying the same thing in 2023
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So it's just uneventful, how are retail investors supposed to make money?
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Balance phase = no opportunity? Or is it the prelude for the main players to start cutting the leeks?
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Compared to this, I'm more concerned whether the Fed will really dare to cut rates
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Nice try, but who would believe it?
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This "not too tight, not too loose" approach is actually good for on-chain ecosystems, at least it won't suddenly cause a crash
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MEVictim
· 12-11 02:52
The balanced state sounds comfortable, but how long can it really last...
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MEVHunter
· 12-11 02:52
Neutral interest rate? Sounds like the arbitrage space is about to be squeezed... It was the extreme market conditions before that really was the stage for the gas war.
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TokenRationEater
· 12-11 02:51
The balancing phase is here. It sounds good, but can it really be steady?
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BearMarketNoodler
· 12-11 02:46
The normalization of neutral interest rates means that we are entering an era without excess returns. Retail investors need to wake up and stop dreaming of easy money from liquidity injections.
Here are my thoughts on the future interest rate environment: it is likely to enter a relatively balanced new phase. It won't be a period of crazy liquidity injections like in 2020, leading to rampant liquidity; nor is it likely to repeat the aggressive rate hikes of 2022. This neutral interest rate environment could become the norm, representing neither extreme easing nor extreme tightening for the market.