Inflation won’t go away, growth is sputtering out. The Fed is forced to take flak from both ends.
The U.S. July PCE price index has been released: the month-over-month figure rose by 0.2%, while the year-over-year figure climbed to 3.7%.
Core PCE also increased by 0.2%. It’s still far from the Fed’s 2% target.
What’s even more worrying is that the household savings rate has dropped to 3%. Americans may be earning more, but they aren’t saving it.
One side is that prices can’t be brought down, and the other is that growth is slowing.
DeVere Group CEO said it plainly: this is the shadow of stagflation knocking at the door.
To rein in inflation, the Fed needs rate hikes. To support growth, it needs rate cuts. But right now it wants both—and can’t deliver on either.
His assessment is that the Fed can only hold steady. But the market reads “holding steady” as caution. What he sees is that the Fed has no good cards left.
Gold and silver have ticked slightly lower, while Bitcoin has been swinging between 77,000 and 79,000.
Next, the script depends entirely on Friday’s Jackson Hole—its first appearance for the newly appointed Fed chair—as well as the September FOMC meeting.
My take: with inflation this sticky, the room for “watering down” (loosening policy) has been squeezed to the limit.
Compared with scarce assets like Bitcoin, the short term is suppression—but in the long run, it’s the story.
Historically, every time sovereign currencies are battered by inflation, scarce assets get re-priced.
Will this time the script repeat? It depends on whether the Fed dares to admit it has run out of options.
If stagflation truly takes hold, do you think Bitcoin will be taken down along with everything else—or become the lifeline?
Click the avatar to watch the livestream.
Every day, I’ll take you to follow the Fed’s hot topics—not just what’s happening in the news, but also how to understand the underlying logic and opportunities 👉🦖
#比特币 #美联储
The U.S. July PCE price index has been released: the month-over-month figure rose by 0.2%, while the year-over-year figure climbed to 3.7%.
Core PCE also increased by 0.2%. It’s still far from the Fed’s 2% target.
What’s even more worrying is that the household savings rate has dropped to 3%. Americans may be earning more, but they aren’t saving it.
One side is that prices can’t be brought down, and the other is that growth is slowing.
DeVere Group CEO said it plainly: this is the shadow of stagflation knocking at the door.
To rein in inflation, the Fed needs rate hikes. To support growth, it needs rate cuts. But right now it wants both—and can’t deliver on either.
His assessment is that the Fed can only hold steady. But the market reads “holding steady” as caution. What he sees is that the Fed has no good cards left.
Gold and silver have ticked slightly lower, while Bitcoin has been swinging between 77,000 and 79,000.
Next, the script depends entirely on Friday’s Jackson Hole—its first appearance for the newly appointed Fed chair—as well as the September FOMC meeting.
My take: with inflation this sticky, the room for “watering down” (loosening policy) has been squeezed to the limit.
Compared with scarce assets like Bitcoin, the short term is suppression—but in the long run, it’s the story.
Historically, every time sovereign currencies are battered by inflation, scarce assets get re-priced.
Will this time the script repeat? It depends on whether the Fed dares to admit it has run out of options.
If stagflation truly takes hold, do you think Bitcoin will be taken down along with everything else—or become the lifeline?
Click the avatar to watch the livestream.
Every day, I’ll take you to follow the Fed’s hot topics—not just what’s happening in the news, but also how to understand the underlying logic and opportunities 👉🦖
#比特币 #美联储