Bitcoin rallied to over $19,000 in the same week that saw President-elect Joe Bidens decision to appoint Keynesian economist Jenet Yellen as the next US Treasury Secretary.
Anthony Pompliano, the co-founder/partner at New York-based Morgan Creek Digital Assets, noted that Ms. Yellens economic management style complements Bitcoins bullish case. In his note to investors published Tuesday, the macro analyst said the former Federal Reserve Chairman has a tolerance for bubbles and inflation.
Janet Yellen is likely to be Bitcoins greatest ally over the coming 4-8 years, explained Mr. Pompliano. She has never seen an opportunity to print money that she didnt like. She has never seen a situation of high inflation that scared her.
He cited Ms. Yallens decision in the years that led to the collapse of the housing market in 2008. She argued against deflating the bubble, believing that the US economy was ready to absorb the shock should it bursts. Meanwhile, she also favored using the Federal Reserves power to reduce unemployment, iterating her strong appetite for inflation.
Bitcoin is up by more than 350 percent from its mid-March nadir. Source:BTCUSD on TradingView.com
Ms. Yellen also defended a $3 trillion stimulus package to cushion the aftermath of the 2008 economic crisis. That prompted many economists to call her a dove, which means she prioritized unemployment curbing over reducing inflation.
A Bitcoin-Friendly Keynesian
Mr. Pompliano noted that Ms. Yellens methods matched what the Federal Reserve anticipated amid the ongoing economic slowdown led by the coronavirus pandemic.
The Federal Reserve Chairman Jerome Powell commented earlier this year that his office would like to see inflation above 2 ...
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