Moody’s Chief Economist Says Risk of Correction in Global Markets Including Cryptocurrencies Has Significantly Increased!

Mark Zandi, Chief Economist at Moody’s said the risk of a correction in global asset markets including cryptocurrencies has significantly increased. Zandi said that despite recent price pullbacks, crypto assets, gold and silver are still at risk of downside risks.

Zandi cited the slowdown in US economy, saying that real Gross Domestic Product (GDP) growth was still below its potential level of 2 as it could. The unemployment rate grew steadily and employment growth stagnated, 5 percent of the job population was still in decline, while jobs were slowly increasing.

He also stressed that the Personal Consumption Expenditures (PCE) price index, one of the inflation indicators closely monitored by the US Federal Reserve (Fed), still hovers around 3 percent.

In addition, Zandi said “uncertainties about customs tariff issues and military tension with Iranian markets are putting an additional burden on markets,” adding that economic conditions may be tightened even further.”

This is a combination of the large budget deficit and high borrowing needs, which has led to an extreme increase in interest rates due to the withdrawal of both Fed and global investors from the US Treasury bond market, Zandi said.

The market is currently flooded with speculation, according to . On the other hand, “Attribution prices are soaring sharply,” Zandi said, adding that an already fragile economy is being shaken by asset prices, calling on investors to be careful.

*This is not investment advice.

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