Fed Chair’s Strong Economy Message: What It Means for Treasury Yields and Bitcoin
- Strong consumer spending and stable jobs reduce the urgency for near-term Fed rate cuts.
- PCE inflation at 3.7% keeps the possibility of a September Fed rate hike on the table.
- Higher Treasury yields pressure stocks and Bitcoin while borrowing costs stay elevated.
Federal Reserve Chair Kevin Warsh said the US economy appears to have strengthened. He cited healthy consumer spending and a stable labor market. That assessment weakens the immediate case for Fed rate cuts while PCE inflation remains above the central bank’s target.
Warsh delivered the remarks on Aug. 28 at the Kansas City Fed’s Jackson Hole symposium. He said real consumer spending had risen by more than 2% over four quarters. He also cited a 4.1% jobless rate and business investment.
Why Does a Strong US Economy Weaken the Case for Fed Rate Cuts?
The Fed can cut rates when weak demand threat…
Read The Full Article Fed Chair’s Strong Economy Message: What It Means for Treasury Yields and Bitcoin On Coin Edition.
This content is automatically aggregated. Full credit goes to the original publisher (coinedition.com).
