The post Fed to enter gradual money-printing phase, says Lyn Alden appeared on BitcoinEthereumNews.com.

Economist and Bitcoin supporter Lyn Alden says the US Federal Reserve may be moving into a gradual phase of money printing, increasing liquidity steadily rather than all at once. She expects that process to drive up asset prices, albeit not as much as some Bitcoin fans had anticipated.  Alden’s view is that the Fed will not accelerate it on a massive scale, expanding its balance sheet progressively during a period of overall economic expansion and banking activity.  In her investment strategy newsletter for February 8, Alden said her most important expectation for the Fed is to increase its balance sheet at a rate similar to the growth of total bank assets or national nominal GDP. This suggests the central bank would still add liquidity to the financial system.  Such an expansion of the money supply is often called “money printing,” although it is primarily achieved through digital financial operations, not physical cash. When the Fed expands its balance sheet, it typically buys government bonds or other financial assets.  This injects money into the banking system, making credit more available and encouraging investment. Alden noted that this environment helps hold “high-quality scarce assets.” That covers investments with a limited supply and strong store-of-value qualities.  Commodities such as gold, certain stocks, and cryptocurrencies like Bitcoin are common examples. But she also cautioned investors to be wary of parts of the market that have gotten too hot and to pay attention to assets that remain undervalued or overlooked.  Her comments were made soon after US President Donald Trump named Kevin Warsh to serve as the next chairman of the Federal Reserve. The implication injected considerable uncertainty into financial markets because some investors believe Warsh aligns more closely with tighter monetary policy than other candidates.  Markets remain unsure about interest rates before the Fed…

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Filed under: News - @ February 9, 2026 12:25 am