#USGDPUpdate Markets & the FED - Why Investors care
After the GDP release:
📈Stocks reacted: markets have been volatile but broadly positive - investors are relived the date is out, and some indexes hit records.
💥Treasure yields jumped because strong growth makes bonds less attractive when inflation and rates stay high.
What the Fed Sees:
The Federal Reserve pays close attention to GDP because:
Strong growth could mean keeping rates higher for longer to keep inflation in check.
But a weakening job market pulls the other way - more stimulus (rate cuts) might be considered.
Buttom line:
The Fed is in a "Goldilocks dilemma" - strong growth but persistent infaltion and soft jobs make policy unclear.

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