US economic growth is slowing as concerns about commercial real estate (CRE), debt ceiling and regional banks continue. As a result, after raising interest rates this year from near zero to 5%, several Fed officials speaking recently are open to holding off on hikes. If this happens, it could have a positive impact on stocks and cryptocurrencies such as AltSignals (ASI).
Fed may hold off on rate hike
The United States is facing a triple whammy of events. In the real estate industry, the commercial sector is facing its worst phase on record. Data shows that the proportion of vacant office space has risen sharply in recent months.
As a result, most CRE REITs such as SL Green, Boston Properties and Simon Property Group have seen their share price decline recently. As loan maturity approaches, it is likely that more commercial real estate companies will soon go out of business.
The US is also seeing an increase in the number of bankruptcies as liquidity in the banking sector dwindles and people move their money into money market funds. Some of the most prominent companies that have filed for bankruptcy include Silicon Valley Bank, Vice Media, and Bed Bath & Beyond.
Meanwhile, the debt ceiling issue continues as Democrats and Republicans maintain their hawkish stances. Republicans have insisted they will agree to raise the nation’s debt ceiling if the Biden administration makes substantial spending cuts. Talks between the two sides are expected to resume this week.
So, in light of all this, many Fed officials have supported the move to hold off on raising rates in June. Neil Kashkari of the Minneapolis Federal Reserve said in a statement that he is considering supporting a rate hike waiver at the next meeting. They said:
“The cost of not getting inflation down to 2% is far greater than the cost to Main Street of getting it down to 2%. So I would rather regret than make the mistake of being a little too aggressive and being too lenient.”
More Fed officials, such as Rafael Bastic and Richard Clarida, have also favored holding off on rate hikes. And Fed Chairman Jay Powell has said the bank may not go as high as he had hoped.
Effects on AltSignals
The change in tone by the Federal Reserve will have a positive effect on AltSignals and other cryptocurrencies. For starters, AltSignals is a profitable company that provides trading signals to thousands of people around the world. The company is in the industry since 2017.
Now AltSignals is working to transform its business by turning to artificial intelligence. It aims to adopt the concepts of AI, Machine Learning and Natural Language Processing (NLP) to process this information.
As part of this transition, the developers are running a token sale that has already raised over $765,000 in funding. This is 70.88% of his goal of $1.08 million. With each token sale going for $0.015, there is a chance that this phase of the token sale will end soon.
Following the token sale, the developers will launch the token on popular exchanges such as Uniswap. and MEXC where people can buy and sell it. Given the recent performance of new cryptocurrencies such as Pepe and Milady Meme Coin, this has the potential to grow when ASI Token goes public.
Historically, cryptocurrencies like BTC and ETH tend to do well when the Fed is a bit lenient. A good example of this is what we saw during the COVID-19 pandemic when the prices of most tokens and other assets skyrocketed. Therefore, with the lenient stance of more Fed officials, crypto is likely to rise. Unlike meme coins like Pepe and Milady, AltSignals has a utility behind it as it is already profitable and has thousands of customers as you can see on this Trustpilot page.
