Economist and Bitcoin advocate Lyn Alden argues the Federal Reserve is entering a period of “gradual” money printing, which she expects to mildly stimulate asset prices. This follows market uncertainty triggered by the nomination of Kevin Warsh as the next potential Fed Chair. Current Fed Chair Jerome Powell has offered mixed guidance on rates, and traders now see a reduced probability of a rate cut at the upcoming March FOMC meeting.
The Federal Reserve is entering a “gradual” era of money printing that will stimulate asset prices “mildly,” according to economist and Bitcoin advocate Lyn Alden. In a recent investment strategy newsletter, she stated her base case aligns with the Fed’s expectation to grow its balance sheet proportionally with bank assets or nominal GDP.
Alden added that this outlook means she continues to prefer owning high-quality scarce assets. Her comments followed US President Donald Trump‘s nomination of Kevin Warsh to be the next Federal Reserve Chairman, which caused market concern.
Interest rate policy can influence crypto prices, as expanding the money supply is typically seen as bullish for assets. Some 19.9% of traders now expect an interest rate cut at the next Federal Open Market Committee meeting in March, down from 23% previously shown by the CME Fedwatch tool.
Current Federal Reserve Chairman Jerome Powell has issued mixed forward guidance despite cutting rates several times in 2025. Following the December FOMC meeting, Powell stated, “In the near term, risks to inflation are tilted to the upside and risks to employment to the downside, a challenging situation.”
Powell’s term expires in May 2025, and Warsh has yet to be confirmed by the US Senate. This fuels ongoing investor uncertainty about the direction of interest rate policies in 2026.
