The Fed's Favorite Number Just Broke
The US job quits rate just plunged to 1.8%, a level not seen since the initial chaos of May 2020. This is the clearest, most definitive signal that the labor market is finally cracking under the weight of sustained high interest rates.
For central banks, this data point is existential. It signals a loss of worker confidence and a massive reduction in future wage inflation pressure. The narrative of a "soft landing" is dissolving, replaced by "slowdown confirmed." When the primary inflation driver (wage growth) retreats this sharply, the Fed’s hawkish stance becomes functionally untenable.
This macro shift is the fundamental catalyst that risk assets have been waiting for. Watch $BTC and $ETH closely. The path to rate cuts just got significantly shorter, and the market understands that this liquidity event is rapidly approaching.
This is not financial advice.
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