Slowing economic growth and persistent inflation in the U.S. have raised worries about the risk of stagflation.
Should you be concerned?
In our latest report, we examine the drivers of weak economic data and the impact on growth assets like crypto.
Key Takeaways:
In this first edition of our “Macro Thoughts” series, we examine concerns related to stagflation and its impact on growth assets like crypto.
While there are indicators of slowing economic growth and sticky inflation, we believe that stagflation concerns may be overblown considering resilient domestic demand and moderating wage growth.
Probabilities of rate hikes or the Federal Reserve (“Fed”) not cutting rates this year are not zero, but these scenarios do not seem likely.
The recent correction in the crypto market may not be entirely negative as it positions the market for more sustainable growth. Moreover, despite the correction, the market is still up 38% year-to-date.
Read the full report here.