@lakerio
Investors Expect Significant Inflation Decline!
📢 Today, key inflation data will be released, with positive expectations for the market.
Let’s break it down:
Time: Today at 12:30 UTC.
Market Expectations: Investors anticipate inflation to decrease from 2.9% to 2.5%.
Comments:
The expected drop in inflation suggests that the Federal Reserve (Fed) may soon need to unwind its restrictive monetary policy.
A sharp decline in inflation could be portrayed by the media as a delayed response from the Fed, signaling the onset of a recession in the U.S.
In the long run, lower inflation is positive for risk assets.
❗️ The Fed has already achieved its key targets for GDP growth, the labor market, and unemployment. Inflation is also beginning to align with desired levels. A Fed rate cut and a liquidity influx seem inevitable—the only question is, how many rate cuts will we see this year and next?