🚨 BIG WARNING: THE US ECONOMY IS IN SERIOUS TROUBLE
US Q4 GDP data just came in, and it’s significantly worse than expected. Expected: 3.0% Actual: 1.4% This marks the second weakest GDP print in the last two years. The slowdown in economic momentum is now undeniable. What makes the situation more concerning is inflation data: Both the PCE Price Index and Core PCE came in above expectations, showing that prices for goods and services are still rising. This creates a dangerous setup: The economy is slowing Job pressure is increasing Cost of living remains elevated The Fed now faces a policy trap: If the Fed eases, inflation risks accelerating. If the Fed stays hawkish, economic conditions deteriorate further. If the Fed does nothing, both consumers and markets suffer. This is a textbook setup for stagflation risk. Macro conditions are tightening, volatility is likely to rise, and markets should not ignore this signal. Stay alert.
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🚨 BIG WARNING: THE US ECONOMY IS IN SERIOUS TROUBLE
US Q4 GDP data just came in, and it’s significantly worse than expected.
Expected: 3.0%
Actual: 1.4%
This marks the second weakest GDP print in the last two years.
The slowdown in economic momentum is now undeniable.
What makes the situation more concerning is inflation data:
Both the PCE Price Index and Core PCE came in above expectations, showing that prices for goods and services are still rising.
This creates a dangerous setup:
The economy is slowing
Job pressure is increasing
Cost of living remains elevated
The Fed now faces a policy trap:
If the Fed eases, inflation risks accelerating.
If the Fed stays hawkish, economic conditions deteriorate further.
If the Fed does nothing, both consumers and markets suffer.
This is a textbook setup for stagflation risk.
Macro conditions are tightening, volatility is likely to rise, and markets should not ignore this signal.
Stay alert.