The Fed's Puzzle: Low Inflation and Weak Employment 🤔

Land in the reality of the economy! No, I'm not talking about boring numbers. I'm talking about how a simple move by the Federal Reserve of the United States can shake your pocket and that of the entire region. Why are Wall Street and Bitcoin celebrating while people wonder what's going on? Here's the summary.

Is a 0.5% cut in the Federal Reserve rate feasible in September? 🤑

It seems the financial world has gone crazy. Bitcoin breaking records, Wall Street soaring, and all because of a whisper 🗣️. The U.S. Treasury Secretary dropped the bomb: interest rates are too high. This is not just any gossip; it's a signal that makes the markets start to dance 💃. The strongest bet is that the Fed will cut rates in September, even if it's just a little, 25 basis points.

But why? The reason is that the U.S. economy is not as strong as previously thought. Employment data is not the best and GDP growth estimates dropped from 2.5% to 1.5% 📉. Those are the signals the Fed needs to say, "Okay, we need to inject a little adrenaline into this." And when that happens, investors go crazy for risk assets, like Bitcoin and cryptocurrencies, because money becomes cheaper to invest.

Inflation is not a problem for now; it remains stable. And the tariffs imposed by the government, which could cause a price increase, are being absorbed by companies 🤝. The fear of crazy inflation, like we saw in 2021-22, no longer exists. So, with the labor outlook weak and inflation under control, the Fed has a clear path to make that cut.

The big risk is that employment data collapses; then the Fed would have to act more forcefully, and we could see cuts of up to 50 basis points. It's as if they are waiting for the exact moment to pull the trigger.

This Fed movement not only affects the United States, but it resonates throughout Latin America. A weaker dollar benefits our economies, makes dollar debts more manageable, and can boost our own stock markets. So, keep an eye on what happens in September, because that decision could change the game for everyone.$BTC $ETH $SOL