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Former Atlanta Fed President Raphael Bostic told CNBC that the inflation leg of the dual mandate is far more concerning, noting supply shocks are resolving more slowly than in past cycles and can leak into expectations, and said it would not surprise him to see continued patience at the October Fed meeting. That tilt keeps front-end Treasury yields supported and trims the odds of near-term easing, a tighter-for-longer signal that firms the dollar and pressures the highest-beta duration trades, including NASDAQ growth and BTC/ETH. He also flagged that wages cannot be looked through and welcomed Warsh reinforcing his Jackson Hole message; the read changes only if wage growth and inflation expectation surveys cool, or if labor data deteriorate enough to reprice cuts back into the curve.
As a Macro signal, watch whether it changes price action, volatility, or flows around BTC, ETH.
Original Source: InvestingLive Central Banks
This page is market information analysis, not investment advice.
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Influencer Threads
Dalio says that even as policymakers try to hold short-term rates down, long-term rates are rising relative to short rates, a trend he says is already visible alongside a weakening dollar and moves in gold. In his view, with bonds falling and stocks rising, prospective equity returns are now low versus bonds, which translates into broader pressure on the stock market.
Anthony Pompliano notes Trump's announcement of $5,000 stimulus checks and argues, as his own view, that the more money is handed out, the higher bitcoin, gold, and land will go. The implied channel is added liquidity supporting hard assets.
Ray Dalio shares his view that an ideal economy combines strong, broadly shared growth and wealth creation with contained inflation, noting that both growth and inflation matter. He says he was recently asked to explain stagflation and how it relates to the monetary situation he believes we are currently in, and is sharing that explanation.
