🚨 US STAGFLATION FEARS ARE BACK
The latest US data just made the Fed’s job even harder. PCE inflation came in at 3.7%, above the 3.6% expectation and still well above the Fed’s 2% target, while Q2 GDP growth was confirmed at just 1.5%, down from 2.1% in Q1. In simple terms: inflation is staying hot while economic growth is slowing. That’s the exact combination markets hate. If the Fed keeps rates high, growth could weaken further. If it cuts too soon, inflation could accelerate again. Traders are already reacting, with September rate-hike expectations reportedly rising to around 44% from roughly 36% before the data. Now the next inflation and jobs reports could become critical for $BTC, $ETH, stocks, bonds and the dollar. The Fed may have a very difficult decision ahead.
The latest US data just made the Fed’s job even harder. PCE inflation came in at 3.7%, above the 3.6% expectation and still well above the Fed’s 2% target, while Q2 GDP growth was confirmed at just 1.5%, down from 2.1% in Q1. In simple terms: inflation is staying hot while economic growth is slowing. That’s the exact combination markets hate. If the Fed keeps rates high, growth could weaken further. If it cuts too soon, inflation could accelerate again. Traders are already reacting, with September rate-hike expectations reportedly rising to around 44% from roughly 36% before the data. Now the next inflation and jobs reports could become critical for $BTC, $ETH, stocks, bonds and the dollar. The Fed may have a very difficult decision ahead.
