The CPI results are out and it's not too shabby. It's come in at 4.9% instead of the 5.0% that was expected. The core readings stayed put where they were predicted to be, so that's pretty much on par with what everyone was thinking.
But what does that mean for us? Well, the price is currently hovering around the first resistance level, so it's not really time to jump in just yet. We don't wanna risk getting burned, especially when we're still waiting to see how things will develop.
That being said, my prediction of an uptrend formation is still looking pretty good. I need more confirmations on the short term charts, and then start looking for some long setups. If we can develop a good uptrend here, then we definitely wanna ride that wave and make some gains.
But what does that mean for us? Well, the price is currently hovering around the first resistance level, so it's not really time to jump in just yet. We don't wanna risk getting burned, especially when we're still waiting to see how things will develop.
That being said, my prediction of an uptrend formation is still looking pretty good. I need more confirmations on the short term charts, and then start looking for some long setups. If we can develop a good uptrend here, then we definitely wanna ride that wave and make some gains.
What's your projection for the U.S. CPI during the months coming ahead? Will it continue to go down and give the Federal Reserve an opportunity to "ease"/pause their rate hikes? Or will we see more 25 BPS hikes?
The low unemployment data makes me believe that the Federal Reserve will not either ease or pause because doing it will definitely make inflation surge again. It happened during 1976 when Volcker, the Fed Chairman during that time, eased rates prematurely, then he was forced to raise rates more aggressively during 1977 to 1980 bringing recession in the country.
I'm merely an arm chair economist who likes to discuss, debate, and learn about different topics about Economics and Bitcoin.