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The Roundtable: The Case for a (Moderately) Hawkish Fed

A financial markets expert analyzes recent developments.

Marc LoPresti spoke with Roundtable about the current state of the markets in late September, touching on interest rates, crypto, and interventions from the Fed.

LoPresti argues that Jerome Powell of the Federal reserve did "too little, too late," to intervene in August's bull market.

"Eventually enough hawkishness will get rates under control," he says. 

"We're playing catch up and makeup, which is never a good thing. Markets punish feds that do that. And if he goes too far, he goes too hawkish. We could extend ourselves into bigger trouble. So it remains to be seen."

Where tech stocks go, he adds, the crypto market will soon follow. 

"Crypto is 100% correlated to how the markets treat risk investments in risk assets. Crypto is definitively considered a risk asset. It's correlated with tech. If tech continues to get punished in that inflationary rotation, so does crypto."

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"Crypto fortunes are also tied to the relative strength of the dollar," he adds. "If Bitcoin crossing back over that $20,000 price point in the last day or so on signs of a weakening dollar, I think we're gonna continue to trade in that range." 

"I don't see a major breakout between now and the end of the year."

Watch the full discussion below:

Roundtable Guests:

Marc Lopresti, Managing Director, Moneta Advisory Partners