đŸ”” The Fed is playing with fire: Inflation below 1%
 and deflation is looming đŸ”„

âŹ…ïž Important information for investors:

Recent estimates suggest that real inflation may be below 1% — significantly lower than prevailing market expectations.

đŸ”· The looming danger: Deflation

Deflation is more dangerous than high inflation because it leads to:

â–Ș Falling prices and profits

â–Ș Weak demand

â–Ș Pressure on businesses and markets

â–Ș A broader economic slowdown

đŸ”· Tight monetary policy

Continuing monetary tightening at this time could increase the risk of entering a deflationary phase, making markets more sensitive to any future decision.

âŹ…ïž Why does this matter to you as an investor?

đŸ”č Deflation could put downward pressure on asset prices

đŸ”č Volatility could rise sharply

đŸ”č The timing of market entry and exit becomes more critical

đŸ”č Risk management is a necessity, not an option

âŹ…ïž In conclusion: Understanding the direction of monetary policy now is your first line of defense for your investment portfolio.

#CryptoAMA #TrumpProCrypto #GoldSilverRebound #FedHoldsRates #Fed