Famous commodity trader Peter Brandt He shared a series of tweets published by The Kobeissi Letter, an entity that provides expert, high-level commentary on global capital markets and events occurring within them.

Al Qubaisi’s speech revealed a major development regarding the recent measures taken by the Federal Reserve with regard to managing inflation, and interest rates in particular. She says we are now witnessing "the largest Fed market break in history."

The legendary trader Brandt made a significant criticism of the US Central Bank and its Chairman Jerome Powell, commenting on the above-mentioned topic.

“The Fed, its weak Chairman, and its forward guidance will go down in history for their mistake,” Peter Brandt tweeted.

Inflation in the United States continues to grow

On the topic, Al Qubaisi’s letter addressed the significant disconnect they observed occurring between the recent policy actions taken by the Federal Reserve and the way markets reacted to them.

In particular, the trend notes that “the 10-year yield has now risen by 100 basis points since the Fed’s ‘pivot’ began in September,” meaning interest on 10-year Treasuries that help the US government borrow money, which Increases and the national debt rose. The topic also discusses significant increases in inflation indicators such as the core CPI, personal consumption expenditures, producer price index, and general CPI.

Treasury yields are currently at their highest level since May of this year, despite the Federal Reserve aggressively cutting interest rates. One side effect here, according to Al Qubaisi, is the impact on the housing market: “Buying a median-priced home at $420,400 now costs an average of $400 more per month.”

The main reason interest rates are rising, while the Fed is cutting rates, is that “markets have realized that inflation is back on the rise,” the thread asserts.

Bitcoin reacts to Jerome Powell's recent announcement

In December, the world's largest cryptocurrency, Bitcoin, fell below the recently achieved price level of $100,000. This reversal in prices came after Fed Chair Powell announced that the Fed intends to resume tightening its monetary policy next year.

This gave markets a signal that there may be a potential return towards higher interest rates, meaning less liquidity for markets and high-risk assets, such as Bitcoin and gold, in particular.