$BTC Although we have received data on the U.S. economy, oil prices remain high, with WTI crude trading at $112 per barrel, one of the highest levels in decades. It has nearly reached the levels seen during the 2008 financial crisis.


The longer these prices persist, the greater their impact on future inflation indicators, including CPI. We have not yet seen these geopolitical developments reflected in future economic and inflation data.
Positive economic data, such as low unemployment, combined with high oil prices, currently pose the greatest threat to asset markets. On the other hand, weak economic data alongside high oil prices suggest a somewhat better situation for the asset markets.
Ultimately, if oil prices continue to rise, we will see unemployment increase and growth slow down as demand and consumption decrease. This could eventually slow inflation, providing the Federal Reserve(FED) with an opportunity to intervene in the markets.
However, this is more likely to happen in the medium to long term, because in the short term, especially when the economy remains strong, inflation remains a priority. Nonetheless, we will be prepared before the Federal Reserve announces any market interventions, as by then, the market will have already partially digested the news.
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