๐จ US ECONOMY STAYS STRONG โ FED FACES A TOUGH CALL
The latest US ISM PMI came in at 54.5, marking the 9th straight reading above 52 and keeping the economy in expansion territory.
A stronger PMI can also reinforce inflation concerns, making the Fedโs next move more complicated.
The Fed now faces a difficult balance:
โก๏ธ Hold rates: Inflation could remain sticky while yields stay elevated.
โก๏ธ Raise rates: Tighter policy could put more pressure on economic growth.
Either way, the path ahead looks far from simple for the Fed.
The latest US ISM PMI came in at 54.5, marking the 9th straight reading above 52 and keeping the economy in expansion territory.
A stronger PMI can also reinforce inflation concerns, making the Fedโs next move more complicated.
The Fed now faces a difficult balance:
โก๏ธ Hold rates: Inflation could remain sticky while yields stay elevated.
โก๏ธ Raise rates: Tighter policy could put more pressure on economic growth.
Either way, the path ahead looks far from simple for the Fed.
