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Professor Wharton urges Fed to ‘bite the bullet’ and defend US dollar – warns against Bitcoin takeover – Bitcoin News

Wharton Professor Says the Fed Has Been Very Wrong on Inflation, Warns About Bitcoin Taking Over

A professor of finance at the Wharton School at the University of Pennsylvania has warned of “the bitcoin takeover.” He added that the Fed “got horribly wrong over the past 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, the “bitcoin grab,” and the need for the Federal Reserve to defend the U.S. dollar in an interview with CNBC on Friday.

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

Commenting on Federal Reserve Chairman Jerome Powell indicating last week that the first rate hike will take place in March and will likely be 25 basis points, Siegel criticized that the Fed is already behind schedule and should take a more aggressive decision.

“They’re going to have to do a lot more than that…I’m actually disappointed that President Powell hasn’t looked at history that now is not the time for us to slow down,” the finance professor said. Wharton, stating:

The Fed got it horribly wrong last year. I mean, all this temporary inflation. Look at the inflation protection they provided last year – so well below what actually happened through 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.

While stating that ‘Jay Powell is a very good man’ and ‘a good communicator’, Professor Siegel pointed out: ‘The Fed got it very wrong and they are going to have to catch up and they really have to admit they have to bite the ball here.

Regarding bitcoin, he urged the Federal Reserve to take action to defend the US dollar, noting:

We are talking about the bitcoin takeover. We must defend the dollar.

The professor has noted the growing popularity of bitcoin for some time. In January he said that BTC 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 into it”, predicting that “the Fed is going to have to rise a lot more times 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

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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