The University of Michigan has just released a preliminary September report in the U.S. with worrying macro data: the consumer sentiment index unexpectedly fell sharply to 47.8 (well below the forecast of 51 and the prior level of 51.7). More notably, one-year inflation expectations jumped to 4.6%, exceeding the expected 4.2% and the previous 4.0%.
The combination of a drop in consumer confidence and rising inflation expectations reflects a complex economic picture. U.S. consumers clearly feel the growing pressure from higher living costs while growth shows signs of slowing, raising the specter of stagflation—the most troublesome scenario for policymakers.
For traditional financial markets, a surge in inflation expectations will narrow the Fed’s room to loosen monetary policy. U.S. Treasury yields and the U.S. dollar tend to stay elevated to reflect the risk of interest rates remaining anchored for longer, putting pressure on adjustments in U.S. stock markets in the near term.
For the crypto market, risk-averse sentiment is increasing as macro liquidity cannot improve anytime soon. Inflows into $BTC and altcoins may slow down, with investors becoming more defensive against persistent inflation variables. 📊
#kinh_te_my #lam_phat #fed
The combination of a drop in consumer confidence and rising inflation expectations reflects a complex economic picture. U.S. consumers clearly feel the growing pressure from higher living costs while growth shows signs of slowing, raising the specter of stagflation—the most troublesome scenario for policymakers.
For traditional financial markets, a surge in inflation expectations will narrow the Fed’s room to loosen monetary policy. U.S. Treasury yields and the U.S. dollar tend to stay elevated to reflect the risk of interest rates remaining anchored for longer, putting pressure on adjustments in U.S. stock markets in the near term.
For the crypto market, risk-averse sentiment is increasing as macro liquidity cannot improve anytime soon. Inflows into $BTC and altcoins may slow down, with investors becoming more defensive against persistent inflation variables. 📊
#kinh_te_my #lam_phat #fed