Are Fed staglfation fears dialled-in? The US economy just printed 2.0% GDP growth and 4.5% PCE inflation simultaneously. Polymarket now shows a 58% chance of zero rate cuts in all of 2026. BTC slid to $76K.
/r/bitcoin_com/comments/1t33ve8/are_fed_staglfation_fears_dialledin_the_us/
Posted by Bcom_Mod
2 Comments
These numbers seem generous. The market is in denial. Buckle up.
stagflation pricing is real but the inputs aren’t lining up cleanly here. 2% GDP and the 4.5% print (whichever metric) doesn’t read stagflation, it reads slowing-but-okay growth with sticky inflation. the trade is not stagflation per se but rather higher-for-longer with growth holding up, which is closer to the late-cycle template the Fed has been priming for. on the margin i think the fear is overpriced