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Binance Research: Prolonged Energy Supply Disruption Would Be Detrimental to Risk Assets

Binance Research: Prolonged Energy Supply Disruption Would Be Detrimental to Risk Assets

BlockBeats News, March 6th, Binance Research posted on social media that the current market reaction has been relatively mild, but the impact of a long-term energy supply disruption will far exceed that of the commodity sector. Federal Reserve research shows that a sustained 10% increase in oil prices would raise overall CPI by around 0.4 percentage points. This could complicate the Fed’s “last mile” deflation target. Increased defense/energy spending could mean an increase in government bond issuance, a rise in term premiums, a tightening market environment — all of which are unfavorable to risk assets.

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