#MarketPullback

📢Crypto Bleeds Ahead of Powell's Jackson Hole Speech — Reasons Traders Are Nervous

1️⃣Tariffs’ Delay

Many companies have absorbed tariff costs to protect market share, but analysts warn they cannot do so indefinitely. Once passed on to consumers, these costs could drive prices higher and force the Fed to wait before cutting.

2️⃣Sticky Inflation Data

Despite some cooling, inflation gauges remain elevated. The producer price index, a key wholesale measure, has been hotter than forecast, suggesting persistent pressures that complicate any case for aggressive easing.

3️⃣Corporate Limits

U.S. executives have signaled they will eventually be forced to shift tariff costs downstream. If that happens, consumer inflation could accelerate in the coming months, making a September cut seem premature.

4️⃣Mixed Economic Signals

The U.S. economy shows both slowing job growth and resilient consumer demand. This uneven picture could encourage Powell to argue for patience until the Fed has clearer evidence that growth can withstand tariff-driven costs.

5️⃣Policy Uncertainty

Tariffs intersect with fiscal and trade policies in unpredictable ways. That complexity increases the risk of missteps, making a hawkish tone at Jackson Hole more likely.

6️⃣Lessons From History

The tariff shocks of 2018–2019 produced delayed but meaningful inflation, prompting Fed caution. Powell may draw on that precedent to justify holding back this time.