Fed's Goolsbee just dropped a reality check: inflation isn't going anywhere fast.
Supply shocks (oil, commodities) keep pushing peak inflation timelines back. Was supposed to be Q4 2025. Then 2026. Now 2027.
At some point you stop calling it temporary.
The Fed's in a corner. Can't ignore this anymore without losing credibility. But tightening means pain—unemployment vs inflation tradeoff. Classic stagflation setup.
Goolsbee's "somewhat hopeful" supply pressures ease. Translation: he's not confident.
He called persistent supply shocks the greatest danger to the economy right now.
For crypto: prolonged high rates = liquidity stays tight. Risk assets stay under pressure. Don't expect a Fed pivot anytime soon.
Macro headwinds aren't clearing up in 2025. Plan accordingly.
Supply shocks (oil, commodities) keep pushing peak inflation timelines back. Was supposed to be Q4 2025. Then 2026. Now 2027.
At some point you stop calling it temporary.
The Fed's in a corner. Can't ignore this anymore without losing credibility. But tightening means pain—unemployment vs inflation tradeoff. Classic stagflation setup.
Goolsbee's "somewhat hopeful" supply pressures ease. Translation: he's not confident.
He called persistent supply shocks the greatest danger to the economy right now.
For crypto: prolonged high rates = liquidity stays tight. Risk assets stay under pressure. Don't expect a Fed pivot anytime soon.
Macro headwinds aren't clearing up in 2025. Plan accordingly.