The U.S. government spends over $1 trillion per year on interest expense.
If the Fed hikes rates further, the federal deficit rises even faster.
If the Fed lowers rates, investors move further out on the risk curve.
Either way, the system increasingly favors scarce assets 🟠.
BREAKING: April CPI inflation rises to 3.8%, its highest level since May 2023.
Core CPI inflation also rose to 2.8%, above expectations of 2.7%.
We are now experiencing post-pandemic inflation levels amid surging oil prices.
Odds of Fed rate HIKES are surging.