#CPIWatch
🚨 U.S. Inflation Falls to 1.73% — Fed Faces Mounting Pressure as Labor Market Weakens
The U.S. economy just sent a mixed signal: inflation has cooled to 1.73%, its lowest in over two years, while the labor market shows signs of strain. This dual dynamic is putting the Federal Reserve in a policy bind — inflation is nearing target, but rising unemployment is flashing red.
After three rate cuts in 2025, the Fed is now expected to deliver at least one more cut in 2026, with some analysts predicting up to three before mid-year. The weakening job market is forcing policymakers to prioritize growth over inflation control, despite lingering concerns about sticky prices.
This macro pivot is already rippling through markets. Gold surged in 2025 and is forecasted to hit $6,000 in 2026, driven by safe-haven demand and liquidity injections. Meanwhile, crypto markets are eyeing a bullish breakout, with investors betting on a looser monetary regime to fuel risk-on sentiment.
For crypto holders, this could be a defining moment. Lower rates mean cheaper capital, weaker dollar, and renewed appetite for alternative assets. Keep your eyes on BTC, ETH, and high-beta altcoins — the next leg up might just be around the corner.
