🔥ATTENTION🔥
📈Get ready for VOLATILITY regarding this:
Why should we pay attention to INFLATION data and how many rate cuts are expected for this year⁉️
👉This week, the IPC and IPP inflation data will be published:
▪️For the IPC, which is known on Tuesday, it is expected to remain at the previous 2.4%.
▪️For the monthly IPP, which is published on Thursday, it is expected to rise from -0.4% to +0.2%.
What would be best for #Bitcoin and STOCKS⁉️
👉Ideally, inflation would fall more than expected, as that is what the FED is looking for to start cutting interest rates.
When is the first rate cut expected and how many will there be in 2025⁉️
🔹Since the last interest rate decision, where Powell appeared more concerned about inflation (even though it is falling) than about the economy (even though the data is negative), the probabilities of cuts have decreased.
🔹A few weeks ago, 4 rate cuts were expected this year, with the first in June.
🔹After that decision, only 2 cuts are now expected, with the first not occurring until September.
Why can investors expecting FEWER CUTS be positive for financial markets⁉️
📍It is positive because what would be truly chaotic is for investors to expect a cut and for the FED not to implement it.
📍Previously, markets expected many more cuts than those projected by the FED.
📍Now, investors have aligned with the projection of 2 cuts that the FED had already anticipated.
