🚨 Inflation update:

PCE came at 2.9%, a little higher than expected (2.8%).
That means prices are still rising and not slowing down much.
What does this mean?
If inflation is still high:
•The Fed may delay cutting interest rates
•Loans stay expensive
•Less money flows into markets
What are “risk assets”?
Risk assets = investments that can go up fast, but also drop fast.
Examples: stocks and crypto.
When rates stay high:
•Investors become more careful
•They move money to safer assets
•Stocks and crypto can go down short term
Simple:
High inflation → High interest rates → Pressure on stocks & crypto.
Markets move based on money flow.