🚨 FED WATCH: Too Late for Rate Cuts? 💸

Truflation shows US inflation near 0.68%, yet the Fed still calls the economy “strong.” Meanwhile:

Layoffs rising 📉

Credit defaults climbing 💳

Bankruptcies ticking up 🏦

Disconnect alert: Official statements vs. real data are diverging sharply.

Key risks:

1️⃣ Labor Market Weakening – Jobs aren’t collapsing overnight, but cracks are forming faster than Fed narratives suggest.

2️⃣ Inflation Cooling – 0.68% signals disinflation, maybe even deflation ahead. Deflation = consumers delay spending → revenue drops → layoffs accelerate. ⚠️

3️⃣ Credit Stress Rising – Auto loans, corporate debt, and credit cards show early warning signs of balance sheet pressure.

Bottom line: If inflation is already falling, jobs are softening, and credit is under strain… the Fed may be behind the curve. Market reactions to policy shifts could be sharper than expected.

#Macro #FedWatch #Rates #Inflation #CryptoMarkets #TradingAlerts