U.S. Inflation Faces Continued Pressure Amid Rising Tariffs
Inflation’s heating up in the U.S., and tariffs are a big reason why. According to recent insights, the average U.S. tariff rate hit 15.6% in June—highest since 1937! That’s pushing prices up, with experts like Richard Clarida, former Fed Vice Chair, warning inflation might climb past 3%. Why? Companies are stockpiling goods to dodge tariff hikes, and those costs are trickling down to us.
So, what’s this mean for crypto? Higher inflation often makes Bitcoin and other digital assets shine as hedges against a weakening dollar. But there’s a catch—market uncertainty is growing. Clarida notes the 10-year Treasury bond yields are spiking, signaling “bond vigilantes” are back, watching the Fed closely. If folks start questioning the Fed’s new Chair, stocks and bonds could wobble, potentially boosting crypto’s appeal as a safe haven.
Will the Fed stick to its plan for two rate cuts this year? That’s up in the air. Businesses are feeling the pinch, with some, like a major home goods chain, citing tariffs as a final blow to their finances. For crypto investors, this could mean opportunity—Bitcoin’s been resilient lately, even as tariffs shake things up. At One More Cent, we’re also ramping up our community efforts, hosting a webinar next week to dive into how inflation impacts DeFi strategies. Stay tuned for details!
