In the latest episode of Macro Markets, analyst Marcel Pechman provides an in-depth analysis of the current state of the American economy. Pechman begins by discussing a headline from Barron’s that highlights a significant disparity between people’s perception of the economy and the objective data.
According to Pechman, a substantial portion of the United States population lacks sufficient savings for retirement, which may necessitate longer working years. He agrees with Barron’s assessment and delves into the concept of excess savings. Pechman notes that household wealth in the U.S. has reached unprecedented levels, primarily due to surges in equities and real estate assets.
Shifting his focus, Pechman addresses rising concerns among U.S. consumers regarding increasing prices, specifically the cost of filling up their vehicles with gasoline. He connects this issue to the recent surge in U.S. crude futures, which was influenced by Saudi Arabia’s decision to extend output curbs.
Pechman highlights the challenges that President Joe Biden may face in managing inflation and the impact of Federal Reserve interest rate hikes on real estate and the S&P 500. He suggests that if inflation outpaces income growth, it could exert downward pressure on Bitcoin (BTC), a popular cryptocurrency.
Moving on to the U.S. budget issue, Pechman explores the possibility of a government shutdown resulting from disagreements in Congress. He critically analyzes the use of disaster funds to cover war expenses, drawing attention to the Biden administration’s priorities. Pechman questions the potential consequences and legality of such maneuvers.
Pechman concludes the episode by proposing that a U.S. government shutdown could trigger a bull run in Bitcoin. He advises viewers to keep a close eye on this potential trigger for a cryptocurrency rally, particularly in early October.
For a comprehensive analysis of these topics, viewers are encouraged to watch the latest episode of Macro Markets on the Cointelegraph Markets & Research YouTube channel.