๐จ Is the Fed Already Too Late for Rate Cuts? ๐จ
๐ Truflation shows US inflation at 0.68% โ but the Fed still says the economy is strong.
Hereโs the disconnect:
$BTC Jobs: Official story โ strong. Reality โ layoffs rising, hiring slowing, wages stagnating.
Inflation: Fed โ sticky. Reality โ prices cooling fast, disinflation on the horizon.
Credit & Debt: Delinquencies up, bankruptcies rising, corporate stress building.
๐ก The risk isnโt inflation anymore.
Itโs deflation and growth slowdown:
Deflation โ consumers delay spending โ businesses cut production โ layoffs accelerate.
Over-tight policy now can amplify the slowdown instead of stabilizing it.
โณ Monetary policy works with a lag. By the time the Fed reactsโฆ
the damage is often already baked in.
The market sees it. Thatโs why:
Inflation fears are fading.
Growth fears are taking over.
Policy reversal expectations are driving next moves.
โ ๏ธ Key takeaway:
If the Fed waits too long, it wonโt be fighting inflation โ it will be fighting a slowdown thatโs already here.
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