The "cost of labor" in America has "ignited" expectations!

The data released today indicates that the "cost of labor" (meaning how much it costs companies to hire) has risen by 4.4%. This number is much larger than all the calculations and forecasts that were around 3.5%.

What does this mean?

Simply put, when companies pay higher salaries and costs to keep their operations running, they will have to "inflate" the prices of their goods and services to make up for the difference. This is called "inflation," and it is the central bank's number one enemy.

Interest rates will not decrease: "Powell" (the Fed Chair) was waiting for the market to "cool down," but these numbers are telling him that the market is still "hot."

Freezing cuts: As long as salaries and costs are rising at this rate, the Fed will keep "tight" on high interest rates and will not lower them soon to prevent inflation from exploding again.

In short 🔴 🔴

In two words: "The dream of lower interest rates has evaporated." This data is the worst nightmare for Bitcoin and stocks because it means that liquidity will remain "trapped" and loans will remain expensive for a longer period.