Mike Novogratz Urges Bitcoin Purchases

Mike Novogratz has urged followers to buy Bitcoin amid increasing pressure on Jerome Powell.

Powell is facing hostile attacks due to his reluctance to cut interest rates, with some Republicans urging him to resign. FHFA director Bill Pulte is now routinely targeting Powell in order to push for his termination. His most recent social media post accuses Powell of lying during his congressional testimony.

Novogratz believes that these are “Banana Republic moves,” defending Powell. Critics argue that cutting interest rates would help boost the U.S. economy since Powell’s current stance leads to higher borrowing costs.

However, Powell and the Fed are reluctant to cut rates quickly, as persistent inflation remains well above the central bank’s long-touted 2% target. Premature rate cuts could potentially worsen the inflation issue. Strong job numbers also support Powell’s reluctance to reduce the benchmark interest rate.

Amid this growing pressure, some are concerned that the independence of the Fed could be undermined, with markets previously rejecting the idea of firing Powell. The central bank head has stressed that interest rate decisions must be based on data rather than political biases.

Bitcoin proponents like Novogratz believe that undermining the credibility of the most powerful central bank strengthens the case for the leading cryptocurrency. Politicizing the Fed could lead to aggressive rate cuts, further weakening the dollar.

As reported by U.Today, Novogratz previously stated that the passage of the sweeping tax and spending bill is also bullish for Bitcoin, given that billions would be added to the U.S. deficit.