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Post
Yannis SMDigital
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🚨 THE AMERICAN ECONOMY IS STILL STRONG, AND THAT WILL CONFUSE THE FEDERAL.
Just now, the US ISM PMI data was released, and it came in at 54.5.
This is the 9th consecutive release above 52 and shows that the US economy is in an expansion phase.
Strong ISM data also means higher inflation expectations, and that’s not what the Fed wants.
So, that leaves them with two choices.
Keep rates unchanged and simply wait.
But doing that will push yields higher, because the market knows that inflation won’t disappear anytime soon.
Raise rates to bring inflation down.
But that will paralyze economic growth and bring even bigger challenges.
That means one thing is clear: the Fed no longer has an easy path ahead of it now.
$NVDA.US $AAPL.US $GOOGL.US
Just now, the US ISM PMI data was released, and it came in at 54.5.
This is the 9th consecutive release above 52 and shows that the US economy is in an expansion phase.
Strong ISM data also means higher inflation expectations, and that’s not what the Fed wants.
So, that leaves them with two choices.
Keep rates unchanged and simply wait.
But doing that will push yields higher, because the market knows that inflation won’t disappear anytime soon.
Raise rates to bring inflation down.
But that will paralyze economic growth and bring even bigger challenges.
That means one thing is clear: the Fed no longer has an easy path ahead of it now.
$NVDA.US $AAPL.US $GOOGL.US
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