Unemployment grows as the Fed raises interest rates

Fed Chairman Jerome Powell, on May 17, stressed his determination to pull down inflation, saying the central bank would raise interest rates until price growth fell to a healthy threshold.

Earlier this month, the Fed raised interest rates by 0.5 percentage points, its second lift this year, amid the sharpest rise in the US consumer price index (CPI) in 40 years. Mr. Powell said the Fed could continue to raise interest rates by a leap of 0.5 percentage points in subsequent meetings as long as economic conditions remain the same.

Mr. Powell said he still hoped the Fed could reach its inflation target without “sinking” the economy. He added that “there may be some losses in re-establishing price stability,” but he believed the labor market would remain stable, with low unemployment and rising wages.

“The labor market will still be strong if the unemployment rate can increase slightly. I want to say that there are some possible ways to get the economy down soft. Our job is not to eliminate risks, but to try to achieve our goals,” Mr. Powell said.

2TM dismisses more than 80 employees

Brazil’s 2TM, which holds Mercado Bitcoin, the country’s largest cryptocurrency exchange by market valuation, laid off more than 80 employees this week.

“The global financial landscape is changing; rising interest rates and inflation have had a major impact on technology-based companies,” stated 2TM.

According to their LinkedIn pages, Mercado Bitcoin has more than 580 employees, while 2TM has more than 80.

The cut came about a week after Bitso, Mercado Bitcoin’s main competitor in Brazil, cut 80 employees, CoinDesk reported earlier.

In January, the 2TM Group said it plans to expand to Europe with the capture of Lisbon-based CriptoLoja.

Coingecko will not fire employees and plans in the bear market.

In the past, the cryptocurrency market has been highly volatile by the downward movement of BTC and the collapse of Terra. These things can happen repeatedly in this volatile market, so the distribution and management of risk are critical.

It can be said that the main reason the whole market went down was that Terra collapsed, and the war between Ukraine and Russia was the leading cause. This has caused a lot of supply chain problems and raised inflation. So the Fed has no choice but to raise interest rates to contain inflation. Stock valuations are growing very sensitive to i/r and are struck, and we are only at the beginning of the Fed interest rate tightening cycle.

Bobby Ong said: “Unfortunately, we are just at the start of the rate tightening cycle by the Feds. The Feds will have to continuously increase interest rates for the next few quarters to tame inflation and more pain is incoming. We told our team to expect the next 12-18 months to be challenging.”

However, CoinGecko is extremely careful in each step of the company’s plan and always focuses on optimizing revenue and building more products to help the community.

“Financially, we have stayed prudent, and because of that, we should be able to sustain the company in a long bear market. We are not planning for any layoffs, and we hope never to lay off our team, but we can never guarantee that if market conditions deteriorate significantly.” Bobby Ong said.

This will be tough for everyone, even the significant venture capital funds.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

CoinCu News

KAI