Two major threats are converging—and the markets are waking up fast.
Bloomberg Economics analysts are warning that U.S. inflation could surge to 4% by August, driven by:
🔻 1. Trump-Era Tariff Truce Ending Soon
$300B+ worth of goods could face renewed reciprocal tariffs
Global trade flows might get disrupted
U.S.-China trade war 2.0 back on the table?
🔥 2. Middle East Oil Shock Escalating
Oil may surge to $130+/barrel (currently ~$85)
Every $10 jump = +0.4% to CPI
Summer driving season could spike U.S. gasoline prices
📊 Inflation Fallout: What to Expect
🇺🇸 CPI may hit 4% by August (currently 3.3%)
🪙 Fed rate cuts delayed — possibly pushed to Dec or even 2025
🧾 Consumer wallets squeezed from both energy + tariff shocks
📈 Market Reactions Already Underway:
⚡ Energy stocks climbing in anticipation
📈 Treasury yields rising with inflation bets
🕵️♂️ FedWatch Tool now pricing only 1.25 rate cuts in 2024 (was 3+ earlier)
🧠 The Macro Trilemma for 2024: Policymakers now face an election-year challenge:
1. Fight inflation
2. Avoid a recession
3. Navigate political risk (Trump proposing new tariffs, Biden with limited oil reserve options)
🎯 Key Takeaway:
Volatility is rising. Whether you’re in crypto, equities, or commodities — staying informed and nimble is 🔑. Keep an eye on CPI, Fed signals, and energy markets.
Jese hi CPI 4% ki taraf badh raha hai, investors ne
Bitcoin (BTC),$BTC
Ethereum (ETH), aur
Binance Coin (BNB) $BNB
jaise strong crypto assets ki taraf rush karna shuru kar diya hai — ye inflation se bachav ka digital raasta ban rahe hain.
📌 Follow me for more macro-to-crypto insights.
💬 Let’s discuss: Will the Fed act in time—or is 4% CPI just the beginning?
#Inflation #Tariffs Watch #cpi I #RateCuts