Hi HODLers, Hiveans and Lions,
Stock market was going up as it usually does until the one of the member of the FED decided to state that if the economy continues to do so well, there might not even be rates cuts!
Minneapolis Fed President Neel Kashkari said Thursday that progress on inflation has stalled, which could leave the central bank unable to cut rates this year if the trend continues.
This has the immediate effect to tank the market. 10Y Interest rate remains elevated at 4.32% and Oil is on its way up to $90.
Inflationary pressures are certainly here but I personally believe that it will dwindle down as consumers adjust and start realizing that they need to build back their savings. For once, Europe might be ahead in this trend, Switzerland consumer spending is flat and CPI has been lower than expected recently. This is after the Swiss National Bank decided to lower interest rates.
In any case, the WSJ had a cool article about price increases in the food sector. These increases are for basic products and are scary... I definitely felt the hit and I am not on the low end of the income spectrum. Can't imagine what a family of 4-5 must have felt.
How much did these products cost in 2019?
Consumer Price Index finally coming back to normality!
In the end, it just tells me that FIAT is starting to debase at an extreme rate and that gives me even more confidence that #bitcoin or some other very scarce crypto assets might be a good edge against these inflationary pressures.
Stay safe out there,