US May CPI Explodes? The Scenario the Federal Reserve Fears Has Unfolded!
At 8:30 PM tonight, the US May CPI data is about to ignite the market. Don't be fooled by the screams of 'inflation is back'; this data is likely a carefully disguised fireworks show.
The market generally bets that the May CPI year-on-year will jump to 2.5%, and core inflation is also stirring. A bunch of people are eager to shout 'inflation is heating up, gold will go crazy, and the Federal Reserve can't hold on!' But I dare say this looks more like 'artificial inflation.' Look at those things that have gone up in price—clothing, home appliances, new cars—none of them are not the result of the tariff sticks from the Trump era? This is called 'forced price increases,' and it’s not the real scene of the public actively opening their wallets and consuming hotly.
The real consumer engine—the service sector—is still stalled. Airfare and hotel prices are slumping. The reason is stark: everyone’s wallets are thin, and they would rather stay home if they can, saving wherever possible. This exposes a core problem: domestic demand hasn’t really picked up; the current small price increase is very unstable.
The Federal Reserve has long been in turmoil. One group is focused on the 'powder keg' of tariff inflation, eager to defuse it early; another group insists this is just a 'small wave' caused by policy side effects and doesn’t warrant a change in direction. Currently, the market bets that the Federal Reserve will stay put, but whether they will cut rates in the second half of the year has become the biggest question hanging overhead.
This wave of inflation is a facade created by 'policy stimulants' and has nothing to do with healthy economic recovery. Traders, wake up! Now stubbornly sticking to directional predictions is tantamount to seeking death. Gold and crypto assets are on the verge of a powder keg market! The key is to hit the volatility nodes—grab the meat and run, if wrong, cut immediately; stop-loss is a life-saving talisman!
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