December's inflation print came in at 2.7%, signaling that price pressures remain stubborn despite earlier Fed rate cuts. This persistent inflation keeps households squeezed on purchasing power and suggests the central bank faces a delicate balancing act ahead. For crypto markets, sticky inflation readings like this matter—they shape expectations around future monetary policy and liquidity conditions. When real rates stay elevated due to inflation concerns, capital flows between traditional assets and digital currencies often shift. Traders watching macro trends should keep close tabs on whether inflation continues holding above the Fed's 2% target, as this could influence both market sentiment and asset allocation strategies in the coming months.
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December's inflation print came in at 2.7%, signaling that price pressures remain stubborn despite earlier Fed rate cuts. This persistent inflation keeps households squeezed on purchasing power and suggests the central bank faces a delicate balancing act ahead. For crypto markets, sticky inflation readings like this matter—they shape expectations around future monetary policy and liquidity conditions. When real rates stay elevated due to inflation concerns, capital flows between traditional assets and digital currencies often shift. Traders watching macro trends should keep close tabs on whether inflation continues holding above the Fed's 2% target, as this could influence both market sentiment and asset allocation strategies in the coming months.