About the latest episode macro marketAnalyst Marcel Pechman takes a look at the current state of the U.S. economy. He cited a Barron’s headline that highlighted the discrepancy between people’s perceptions of the economy and objective data.
Pageman delved into the concept of excess savings, agreeing with Barron’s that a large portion of the U.S. population lacks adequate retirement savings and may need to work longer. He noted that U.S. household wealth has reached new heights, largely due to soaring stocks and real estate assets.
Pageman shifted focus to discuss U.S. consumers’ concerns about rising prices, specifically the rising cost of filling up their cars. He linked this to a recent surge in U.S. crude futures prices, driven by Saudi Arabia’s decision to extend production curbs.
Pageman foresees challenges for President Joe Biden, particularly in managing inflation and the impact of the Fed’s rate hikes on housing and the S&P 500. He then addressed the impact on Bitcoin (BTC), suggesting that if inflation outpaces income growth, it could put downward pressure on the cryptocurrency.
Moving on to the U.S. budget, Pageman discussed the possibility of a government shutdown due to disagreements in Congress. In a critical analysis, Pageman questions the use of disaster relief funds to pay for the war, drawing attention to the Biden administration’s priorities. He highlighted the potential consequences and legality of such practices.
Pechman concluded by saying that the U.S. government shutdown could trigger a Bitcoin bull run and suggested paying close attention to potential triggers for the cryptocurrency rally in early October.
Check out the latest episode macro marketonly available on the Cointelegraph Markets & Research YouTube channel.