🇺🇸 U.S. Inflation Update
U.S. inflation has cooled to 0.86%, now sitting well below the Fed’s comfort zone. Inflation isn’t the headache anymore — policy risk is.
The real concern? Overtightening. Keeping rates high for too long could choke growth and put extra pressure on financial markets.
The tone has flipped quickly: From “rate cuts might come soon”
To “rate cuts are urgently needed”
Monetary policy works with a delay. If the Fed hesitates, the economic slowdown may already be locked in by the time they act.
Markets know this — and they’re watching every move closely.