🛑 Federal Dilemma: Debt Management Outpaces Inflation and Rate Cuts Are Coming

⬅️ Market Contradiction: Despite the stubborn inflation (hovering around 3%) and strong GDP, the sharp decline in the Manufacturing Employment Index (ISM) is seen as a fracture that will force the Fed to cut rates.

⬅️ The Real Objective: The issue is no longer about fighting inflation, but about transitioning to a phase of "Financial Risk Management" and "Sustainability of Government Debt," where the financial system needs easier liquidity to alleviate pressure.

⬅️ The "Justification" for Cuts: Central banks are looking for the perfect justification (like "protecting the labor market") to implement policies that are actually aimed at saving the bond market and ensuring necessary liquidity, and at this stage, liquidity is king.

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