Is the US economy flashing red? GDP declines, but inflation heats up
The US GDP unexpectedly declined by 0.3% in the first quarter, marking the first negative growth since 2022.
Strangely, prices have risen faster. Core inflation reached 3.5%, the highest in nearly a year.
One reason is: companies are worried that Trump will reintroduce tariff policies, prompting them to stock up on goods in advance, leading to a 'surge in imports', which in turn dragged down GDP. But the pressure of inflation is real, putting the Federal Reserve in a dilemma: the economy is weak, and they want to cut interest rates, but with inflation heating up, they cannot inject liquidity.
Once the news broke, US stocks plummeted, and Bitcoin also fluctuated, but subsequently, news emerged that China and the US might negotiate on tariff issues, stabilizing the market atmosphere.
Currently, the market generally believes that: the Federal Reserve's chances of cutting interest rates in the short term have diminished, and both the cryptocurrency market and the stock market may continue to fluctuate and consolidate.
