Hi HODLers, Hiveans and Lions,
Inflation seems to be coming under control and was around 2.8% (CPI number) in December. It is widely expected to be at similar levels in January. Americans are feeling as it is now under control and some prominent entrepreneurs and fund managers are already thinking of further rate cuts or even stimulating monetary policies.
Truflation US Inflation Index
The decision on Wednesday to leave the benchmark federal-funds rate at its current range around 4.3% followed three consecutive rate cuts beginning in September, when the rate stood around 5.3%.
Federal Fund Rates
Analysts praised the decision in December 2024:
“The goal of the December meeting was to get optionality to do very little or nothing in 2025, and they accomplished that,”
As highlighted, some Fund Managers, for some parts of the economy are hit harder by these high rates (Real Estate, small businesses, auto industry...)
Overall great for stocks and the economy. If rates were to drop in the future; that would be incredibly bullish for stocks and cryptocurrencies.
I like that we are saving this boost for later when we might need it more!
Stay safe out there,