According to Cointelegraph, analyst Marcel Pechman recently examined the current state of the American economy on the latest episode of Macro Markets. He referenced a headline from Barron's that highlights the disparity between people's perception of the economy and the objective data. Pechman delved into the concept of excess savings, agreeing with Barron's that a significant portion of the United States population lacks sufficient savings for retirement, potentially necessitating longer working years. He noted that household wealth in the U.S. has reached new heights, primarily due to surges in equities and real estate assets.
Pechman discussed rising concerns among U.S. consumers about increasing prices, particularly the cost of filling up their vehicles with gasoline. He connected this to the recent surge in U.S. crude futures, influenced by Saudi Arabia's decision to extend output curbs. Pechman foresees challenges for President Joe Biden, especially in managing inflation and the impact of Federal Reserve interest rate hikes on real estate and the S&P 500. He then addressed the implications for Bitcoin (BTC), suggesting that if inflation outpaces income growth, it could exert downward pressure on the cryptocurrency.
Moving on to the U.S. budget issue, Pechman explored the possibility of a government shutdown due to disagreements in Congress. In a critical analysis, Pechman questioned the use of disaster funds to cover war expenses, drawing attention to the Biden administration's priorities. He emphasized the potential consequences and legality of such maneuvers. Pechman concluded by suggesting that a U.S. government shutdown could trigger a bull run in Bitcoin and advised keeping an eye on this potential trigger for a cryptocurrency rally in early October.
