– A new inflation report for the US was released yesterday, and it showed that inflation is at a four-decade high.
– The immediate effect of this news was that the markets tanked, because it is expected that the Fed will respond with more aggressive rate hikes.
– There is a possibility that the Fed will raise interest rates by one percent at their next meeting, which would be an unprecedented move.
– If this happens, it could lead to a crash in the market, because it would signal the full severity of the economic maelstrom we find ourselves in.
– In the short to medium term, there are many headwinds facing the markets, including the bankruptcy of Voyager and the Celsius Network, and the ongoing Three Arrows Capital saga.