Why stagflation and Fed rate cuts point toward owning assets like Ethereum.

So the U.S. economy is getting into uncharted territory, the Kobeissi Letter summed it up pretty well on Twitter: rate cuts are happening while core inflation is still a little over 2.9%. This is something that has not been seen in 30 years. Also on top of this the labor market outlook is getting weaker, deficit spending is well over $2 trillion annually and even jobs reports are on hold because of the government shutdown. And.. the Fed is not finished yet. Two more cuts are expected this year even as the U.S. is fighting against stagflation, slow growth mixed with high inflation. In the meantime tech giants are pouring over $100 billion every quarter into AI showing just how uneven the economy has become.

What does this mean for us regular people?? Well the message is clear: hold assets or get left behind. Cash loses value when inflation stays sticky. Traditional bonds do not keep up when rates fall faster than prices. Assets that have independence from government policy, like ETH, stand out in this environment. As we all know well ETH is no longer just a speculative bet, it is increasingly being used as a reserve and settlement layer by institutions. If stagflation is here as it would seem then the old rule applies again: hard assets are the winner.. and for many more investors ETH is one of them.

Source: https://x.com/KobeissiLetter/status/1974092991842132271