🚨 THE FED IS LOSING THE WAR AGAINST INFLATION
Michigan’s one-year inflation expectations jumped to 4.6% today from 4% last month.
Five-year inflation expectations also rose to 3.4%, the highest level in 4 months.
This is a sign that inflation will remain elevated for longer, and there is only one way to deal with it.
Raise rates aggressively, just as the Fed did in 2022.
But there’s a big problem right now.
The United States’ long-term yields are already at their highest levels in more than 19 years, with a debt that exceeds $40 trillion.
A single rate hike here would add hundreds of billions in additional interest expenses for the U.S. government, which is not sustainable.
So either the U.S. should strike a deal with Iran to bring inflation down, or the U.S. economy is preparing for a bumpy ride in the coming months. $BTC $ETH $BNB #InflacionEEUU
Michigan’s one-year inflation expectations jumped to 4.6% today from 4% last month.
Five-year inflation expectations also rose to 3.4%, the highest level in 4 months.
This is a sign that inflation will remain elevated for longer, and there is only one way to deal with it.
Raise rates aggressively, just as the Fed did in 2022.
But there’s a big problem right now.
The United States’ long-term yields are already at their highest levels in more than 19 years, with a debt that exceeds $40 trillion.
A single rate hike here would add hundreds of billions in additional interest expenses for the U.S. government, which is not sustainable.
So either the U.S. should strike a deal with Iran to bring inflation down, or the U.S. economy is preparing for a bumpy ride in the coming months. $BTC $ETH $BNB #InflacionEEUU
