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🔴 Inflation in America is rising again..
Core CPI inflation reached 3.1%. Producer inflation PPI is above 3%, which is the highest level since March 2022.
📊 This has opened the door for a new debate between Trump and Jerome Powell regarding lowering interest rates despite high inflation.
📉 As for the market, it has already started to price this in. The probability of a rate cut in September has risen to 94%.
🏦 For President Trump, he wants an immediate cut of 300 basis points, which is three times larger than the huge cut that occurred previously in 2020.
🎯 Trump's goals, in short, are as follows:
1. He wants to bring interest rates down to 1%
2. And to reduce mortgage rates by about 3%
In his personal opinion, he says that the potential outcome will affect house prices, and we will see them rise by +10% in the first year, and this is in a real estate market that is currently at its peak.
📈 As for the impact on the markets in general, the price of the S&P 500 stocks could exceed 7000. However, on the other hand, inflation could jump above 5% within a year of this cut.
⚠️ In summary, my friend, the market is on the brink of a sensitive phase, which is a mix of high inflation, political pressure on interest rates, and an ongoing trade war.
Core CPI inflation reached 3.1%. Producer inflation PPI is above 3%, which is the highest level since March 2022.
📊 This has opened the door for a new debate between Trump and Jerome Powell regarding lowering interest rates despite high inflation.
📉 As for the market, it has already started to price this in. The probability of a rate cut in September has risen to 94%.
🏦 For President Trump, he wants an immediate cut of 300 basis points, which is three times larger than the huge cut that occurred previously in 2020.
🎯 Trump's goals, in short, are as follows:
1. He wants to bring interest rates down to 1%
2. And to reduce mortgage rates by about 3%
In his personal opinion, he says that the potential outcome will affect house prices, and we will see them rise by +10% in the first year, and this is in a real estate market that is currently at its peak.
📈 As for the impact on the markets in general, the price of the S&P 500 stocks could exceed 7000. However, on the other hand, inflation could jump above 5% within a year of this cut.
⚠️ In summary, my friend, the market is on the brink of a sensitive phase, which is a mix of high inflation, political pressure on interest rates, and an ongoing trade war.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.