🔴 Inflation in America has risen again..

Core CPI inflation reached 3.1%. Producer PPI inflation is above 3%, and this last one is the highest level since March 2022.

📊 This has opened the door for a new debate between Trump and Jerome Powell about interest rate cuts, despite high inflation.

📉 As for the market, it has already begun to price this in. The probability of an interest rate cut in September has risen to 94%.

🏦 Regarding President Trump, he wants an immediate cut of 300 basis points, which means 3 times larger than the massive reduction that occurred previously in 2020.

🎯 Trump's objectives, in summary, are as follows:

1. He wants to bring the interest rate down to 1%

2. And make mortgages drop by about 3%

In his personal opinion, he says the likely outcome will affect home prices, and we will see an increase of +10% in the first year, and this in a housing market that is currently at its peak.

📈 As for the impact on the markets in general, the S&P 500 stock price could surpass 7000. However, on the other hand, inflation could jump above 5% within a year after 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.