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New research projects U.S. inflation resurgence, challenging bitcoin bulls' disinflation bets
Source: CryptoNewsNet Original Title: New research projects U.S. inflation resurgence, challenging bitcoin bulls’ disinflation bets Original Link: A leading economics institute has warned that the costs of everyday stuff in the U.S. could rise faster this year. This clashes with bitcoin bulls’ hopes for disinflation and lower borrowing costs, which could spark a crypto boom.
Consumer prices in the U.S., a key measure of cost of living, could surprise to the upside this year, potentially topping 4%, according to Peterson Institute for International Economics’ President Adam Posen and Peter R. Orszag, CEO and chairman of global financial advisory and asset management firm Lazard, in their latest research note.
A renewed inflationary upswing would make it harder for the Federal Reserve (Fed) to cut rates rapidly, disappointing risk asset bulls who have come to expect rapid rate cuts in the wake of last year’s disinflationary trend.