BREAKING: Bessent just called it — the US economy is entering an "acceleration phase." 🚀
He pointed to Atlanta Fed's GDPNow projecting 5.0% annualized growth this quarter. Full expensing on equipment, factories, ag structures. "A boom like we haven't seen in over a decade."
His big claim? "It's not inflationary GDP growth." Core inflation dropping, energy shock fading, oil "much lower" ahead. He's urging the Fed to keep an "open mind" on rates.
Here's the tension: The Fed just hiked to 3.75%-4.00%. Unanimously. Warsh called inflation "the problem." August core CPI up 0.3%. The 30-year Treasury yield just hit its highest since 2004.
Bessent sees acceleration without inflation. The bond market and the Fed are pricing acceleration WITH inflation.
Both can't be right. 👀
We find out who's wrong in Friday's jobs report and this week's PCE data.
If Bessent's right and inflation stays cool while growth rips, risk-on rallies hard — $BTC, $ETH, growth plays catch a bid. If the Fed's right and inflation stays sticky, bonds sell off harder, yields spike, and crypto gets squeezed with everything else.
This is the setup. Watch PCE and jobs. If data confirms cooling inflation + hot growth, that's the green light. If it confirms sticky inflation + hot growth, the Fed stays hawkish and risk assets get punished.
Trade the data, not the narrative. 📊
He pointed to Atlanta Fed's GDPNow projecting 5.0% annualized growth this quarter. Full expensing on equipment, factories, ag structures. "A boom like we haven't seen in over a decade."
His big claim? "It's not inflationary GDP growth." Core inflation dropping, energy shock fading, oil "much lower" ahead. He's urging the Fed to keep an "open mind" on rates.
Here's the tension: The Fed just hiked to 3.75%-4.00%. Unanimously. Warsh called inflation "the problem." August core CPI up 0.3%. The 30-year Treasury yield just hit its highest since 2004.
Bessent sees acceleration without inflation. The bond market and the Fed are pricing acceleration WITH inflation.
Both can't be right. 👀
We find out who's wrong in Friday's jobs report and this week's PCE data.
If Bessent's right and inflation stays cool while growth rips, risk-on rallies hard — $BTC, $ETH, growth plays catch a bid. If the Fed's right and inflation stays sticky, bonds sell off harder, yields spike, and crypto gets squeezed with everything else.
This is the setup. Watch PCE and jobs. If data confirms cooling inflation + hot growth, that's the green light. If it confirms sticky inflation + hot growth, the Fed stays hawkish and risk assets get punished.
Trade the data, not the narrative. 📊