Bank for International Settlements: Fiscal consolidation will eventually reduce the need to maintain high interest rates

Comparing news, Bank for International Settlements (BIS) On Sunday, a warning was issued to debtor countries that market confidence could be suddenly lost, confirming long-standing concerns about the cryptocurrency market. According to some cryptocurrency experts,BitcoinAnd gold both indicate that the US and other developed countries will face a fiscal crisis. So-called zero-yield assets have risen 48% and 13%, respectively, this year, supposedly due to safe-haven demand. While cryptocurrency proponents see BTC as the opposite of fiat money's downturn, this cryptocurrency tends to fall along with other risky assets during times of stress.

The consensus in the cryptocurrency market is that rising debt concerns will force the Federal Reserve and other central banks to cut interest rates, thereby spurring more investors to flow into alternative assets such as Bitcoin. Traders expect the Federal Reserve to cut interest rates twice this year by 25 basis points, according to the Chicago Mercantile Exchange's FedWatch tool.

The Bank for International Settlements added that fiscal consolidation will ultimately reduce the need to maintain high interest rates. “As far as fiscal policy is concerned, fiscal consolidation is an absolute priority. In the short term, this will help ease inflationary pressure and reduce the need to maintain high interest rates, which in turn will help maintain financial stability.”