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US GDP growth decelerated to a 1.5% annualized rate in Q2 while June core inflation printed at 3.3%, still well above the Fed's 2% target. The combination of slowing growth and sticky inflation complicates the Fed's rate path: soft activity supports cut expectations, but a 3.3% core reading limits how fast easing can be repriced into UST yields, the dollar, and rate-sensitive risk assets like BTC and NASDAQ. Watch upcoming labor and CPI data to see whether markets shift toward a stagflation read, which would pressure equities and crypto beta, or a disinflation-with-soft-landing read, which would support them.
As a Macro signal, watch whether it changes price action, volatility, or flows around GSPC, BTC, KRW=X.
Original Source: CNBC Markets
This page is market information analysis, not investment advice.
Influencer Threads
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.
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