TL; DR
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Interest rates came in lower than expected, indicating that cuts could happen on September 18, boosting the stock and crypto markets.
Full story
Baby, wake up!
New inflation data just dropped.
The cost of the things we buy and use in our daily lives is not rising as quickly as expected!
Here’s the data…
Core inflation (the things in our lives that are affected by interest rates)
Month-to-month
What was expected: an increase of +0.2%.
What we got: an increase of +0.1%.
Year after year
What was expected: an increase of +3.4%.
What we got: an increase of +3.3%.
General inflation (the stuff that goes up or down based on supply and demand)
Month-to-month
What was expected: an increase of +0.1%.
What we got: a -0.1% decrease.
Year after year
What was expected: an increase of +3.1%.
What we got: a +3.0% increase.
Nice! So what did we get for exceeding expectations?
In short: we got a quick little pump into the crypto markets, followed by a quick little dump – resulting in a round trip back to where we were the last few days.
But in the long run…
This is a positive step toward rate cuts at the next Federal Reserve meeting on September 18.
Cuts that ensure that everyone’s loans and credit repayments decrease, giving them more money to spend and boosting the economy in the long term.
A potential that will likely be exploited by investors as soon as cuts are announced, giving them the green light to put money into stocks and crypto (which will drive up prices).
Until then, we have to hurry and wait.