This is my rudimentary
understanding of the current macro economy (from listening to financial podcasts while I do Nordic Curls).
The federal reserve is increasing rates to tackle high inflation.
They will continue to do this until either:
- Inflation is under control (2-4%)
- Until something breaks (like treasuries)
- (2.5) - Fed sees the cracks spreading and pivots before
disaster
According to people who know much more than I do, #2 (or 2.5) is more likely to happen first.
In this case the Fed would have to inject liquidity into a system that already has record levels of inflation. This spells disaster for fiat currencies and is the ultimate case for bitcoin.
P.S.
Here are the new US income tax brackets for 2023.