TL;DR
-
Interest rates came in lower than expected, suggesting cuts could come on Sep 18th, boosting stock and crypto markets as a result.
Full Story
Babe, wake up!
New Inflation data just dropped.
The cost of the stuff we buy and use in our everyday lives isn’t increasing as rapidly as expected!
Here’s the data…
Core inflation (the stuff in our lives that is affected by interest rates)
Month-on-month
What was expected: a +0.2% increase.
What we got: a +0.1% increase.
Year-on-year
What was expected: a +3.4% increase.
What we got: a +3.3% increase.
General inflation (the stuff that goes up or down based on supply and demand)
Month-on-month
What was expected: a +0.1% increase.
What we got: a -0.1% decrease.
Year-on-year
What was expected: a +3.1% increase.
What we got: a +3.0% increase.
Nice! So what did we get for outperforming expectations?
In short: we got a quick little pump in crypto markets, followed by a quick little dump — resulting in a round trip back to where we’ve been the past few days.
But in the long term…
This is a positive step towards seeing interest rate cuts the next time the Federal Reserve meets on September 18th.
Cuts that would make everyone’s loans and credit repayments decrease, giving them more money to spend, and boosting the economy over time.
A potential that will likely be front run by investors the moment cuts are announced, giving them the green light to pour money into stocks and crypto (pushing prices up in the process).
Until then, we’ll have to hurry up and wait.
