Fed’s Logan: Uncertainty in the economy continues

💡 DMK Insight

Inflation concerns are back on the table, and here’s why that matters for traders: Lorie Logan’s comments signal that the Fed isn’t done tightening monetary policy. With upside inflation risks still looming, traders should brace for potential interest rate hikes, which could impact both forex and crypto markets. If the Fed decides to act, expect volatility in pairs like USD/EUR and assets like Bitcoin, which often react sharply to shifts in monetary policy. Keep an eye on inflation indicators and economic data releases in the coming weeks, as they could provide clues on the Fed’s next moves. But here’s the flip side: if inflation doesn’t materialize as strongly as feared, we might see a dovish pivot, which could lead to a rally in risk assets. So, watch for key economic reports and market sentiment shifts that could signal a change in direction. The next few weeks are crucial for positioning ahead of potential Fed announcements.