On the most recent episode of Macro Markets, analyst Marcel Pechman examines the present state of the American financial system. He references a headline from Barron’s that highlights the disparity between folks’s notion of the financial system and the target information.
Pechman delves into the idea of extra financial savings, agreeing with Barron’s that a significant slice of the United States inhabitants lacks ample financial savings for retirement, probably necessitating longer working years. He notes that family wealth within the U.S. has reached new heights, primarily due to surges in equities and actual property belongings.
Shifting his focus, Pechman discusses rising considerations amongst U.S. shoppers about rising costs, significantly the price of filling up their autos with gasoline. He connects this to the current surge in U.S. crude futures, influenced by Saudi Arabia’s choice to lengthen output curbs.
Pechman foresees challenges for President Joe Biden, particularly in managing inflation and the impression of Federal Reserve rate of interest hikes on actual property and the S&P 500. He then addresses the implications for Bitcoin (BTC), suggesting that if inflation outpaces revenue development, it may exert downward strain on the cryptocurrency.
Moving on to the U.S. finances challenge, Pechman explores the opportunity of a government shutdown due to disagreements in Congress. In a essential evaluation, Pechman questions using catastrophe funds to cowl conflict bills, drawing consideration to the Biden administration’s priorities. He emphasizes the potential penalties and legality of such maneuvers.
Pechman concludes by suggesting that a U.S. government shutdown may set off a bull run in Bitcoin and advises maintaining a tally of this potential set off for a cryptocurrency rally in early October.
Check out the most recent episode of Macro Markets, out there solely on the Cointelegraph Markets & Research YouTube channel.