๐จ Unemployment Spike: Fed's Nightmare Scenario Unfolding ๐
The latest unemployment rate just hit 4.6% โ a four-year high! This is a critical warning sign for the US economy and puts the Federal Reserve in an impossible position.
We're seeing growth slow down while inflation remains stubbornly above the 2% target. Sound familiar? This is the classic definition of stagflation, and it leaves the Fed with no easy answers.
Cut rates too soon, and inflation could surge again โ remember 2021? Hold steady, and risk tipping the economy into a recession. The Fed is walking a tightrope, reminiscent of the 1970s, where aggressive rate hikes ultimately led to a lost decade for the stock market.
While a repeat of the 70s isnโt expected, the situation demands a response. Expect more easing in 2026, but the path forward is fraught with risk. This impacts everything, including $BTC and $ETH. โ ๏ธ
#Stagflation #FedPolicy #Macroeconomics #Economy ๐ป
