The Federal Reserve, Reverse Repo And Bitcoin

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In this episode of Bitcoin Magazine’s “Fed Watch” podcast, we, your hosts Christian Keroles and Ansel Lindner, are back from a well-deserved break. We started out the show by reminiscing about the Bitcoin 2021 conference from a couple of weeks ago. It was the first time we met in person. Perhaps next time, we will record a podcast together live from the conference.

We also talked about current price action for bitcoin and the incredible last couple of weeks for bitcoin that is not yet represented in price. Of course, El Salvador and Taproot are very bullish for bitcoin, but we also gave a bullish spin to the crackdown on mining in China.

Our main topic for this episode is debriefing the reverse repo situation and the latest Federal Open Market Committee (FOMC) meeting. In the statement from last week by Chairman Powell, the Federal Reserve left its headline monetary policy stable. However, there were several changes, one minor and two major.

The minor change was the dot plots. At each meeting of the Fed’s FOMC, members place dots on a chart where they expect the Federal Funds Rate to be in the future. From that dot plot, seen below, market participants form their expectations about future Federal Reserve policy and also draw conclusions about current market conditions.

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