As expected, Trump’s actions are fueling inflation, making it harder for the Fed to continue with a rate-cutting cycle. 🤧
However, Trump’s stance is clear: “If inflation rises after a rate cut, we’ll hike again — but for now, let’s cut rates.” 🤔
Today’s inflation data is likely to come in hot again. This could temporarily create a wave of negative sentiment in the market. But I personally don’t recommend entering short trades at this point. ✋
Why? Because many investors still strongly believe the Fed will move toward a rate cut in September, largely due to political pressure from Trump. As a result, the market is currently holding a bullish bias.
If we see a dip, it could be a buying opportunity