Wharton Professor Urges Fed to ‘Die the Bullet’ and Defend the US Dollar – Warns of Bitcoin Taking Over – Bitcoin News

A finance professor at the Wharton School at the University of Pennsylvania has warned of the “bitcoin invasion”. He added that the Fed “has been terribly wrong in the last year” on inflation and must now act to defend the US dollar.

Finance professor urges Fed to take action to defend US dollar

Wharton finance professor Jeremy Siegel shared his views on inflation, “bitcoin dominance” and the need for the Federal Reserve to defend the US dollar in an interview with CNBC on Friday.

Siegel is Russell E. Palmer Professor Emeritus of Finance at the Wharton School, University of Pennsylvania. His research focuses on demographics, financial markets, long-term asset returns and macroeconomics.

Commenting on Federal Reserve Chair Jerome Powell indicating last week that the first rate hike will be in March and likely to be 25 basis points, Siegel criticized that the Fed is already late and should be making a more aggressive move.

“They’re going to have to do a lot more than that… In fact, I’m disappointed that President Powell hasn’t looked at the story that it’s not time for us to slow down,” emphasized the Wharton finance professor, elaborating:

The Fed was terribly wrong last year. I mean, all this temporary inflation. Look at the protection they made for inflation last year – far below what actually happened up until December.

He said last week that it would be a “big policy mistake” for the Fed to slow interest rate hikes because of the situation in Ukraine.

In stating that “Jay Powell is a very good man” and “a good communicator”, Professor Siegel emphasized: “The Fed is very wrong and they will have to catch up and they really have to admit they need to bite the bullet here.”

Regarding bitcoin, he urged the Federal Reserve to take steps to defend the US dollar, emphasizing:

We talked about bitcoin taking over. We have to defend the dollar.

The professor has been noticing the rise in bitcoin’s popularity for some time now. In January, he said that BTC has replaced gold as an inflation hedge for millennials.

He also warned that the Federal Reserve is “so far behind the curve that we have a lot of inflation built in,” predicting that “the Fed will have to go up much more often than the market expects.”

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What do you think of Professor Siegel’s comments? Let us know in the comments section below.

Kevin Helms

Austrian economics student Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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