Financial Markets Gradually Starting to Price in Secondary Inflation, Despite High Interest Rates

Hello, I'm Incompetent.

Financial markets, having concluded the FOMC, are indicating inflation.

FOMC Suggests Less Need for Rate Hikes as Yields Rise, Keeps Options Open - Bloomberg

While they stated they would not raise interest rates further, there have been changes from the originally planned dot plot, so I believe there is ample possibility that they might raise rates again at the November index announcement.

Now, what about the price of gold, which is pricing in inflation?

It temporarily fell to the early $1800s but has rebounded and is showing strong growth.

The fact that gold, a speculative commodity normally weak against high interest rates, is unusually strong, suggests that it is already predicting a flight from fiat currency, concerns about inflation, and a decline in currency value.

Although this is based on a line drawn from the 1980s, in this case it would be $2,300, but if it breaks through, there seems to be ample room to extend to $2,800.

Considering a scenario of decline
① Price increases grow more than expected, leading to interest rate hikes
② A collapse occurs under the US economy, leading to a decline along with a market crash

I am considering these two futures.

Bitcoin is $100,000.

What happens beyond that?

The arrival of inflation means the arrival of deflation.

Until next time.

Thank you.