US Debt or Boom?

Market Sizzle: Fed Forecasts, Bitcoin Turmoil, Apple AI, US Debt ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [US Debt or Boom?]( Market Sizzle: Fed Forecasts, Bitcoin Turmoil, Apple AI, US Debt [Josh Belanger](joshbelanger) Jun 11 joshbelanger   [READ IN APP](   Did you know that Gen Z is giving the classic heart sign a modern twist? If you’ve been struggling to keep up, you’re not alone. Even a tech-savvy pro can feel like they’re doing finger puppets instead of heart signs. US Debt Crisis Looms The IMF's deputy chief urges the US to cut its debt. Strong growth gives the US a chance to rein in spending and raise taxes. The US must reduce its fiscal deficit to avoid trouble. The Congressional Budget Office predicts debt will rise by 2029. The IMF warns that the US's fiscal deficit could reach 7.1% next year. Both the US and China face significant economic risks. Gita Gopinath of the IMF supports higher taxes for the wealthy to help manage debt. Reforms in pensions and medical spending are also needed. Generative AI could boost productivity but may worsen economic downturns and displace jobs. Countries should support workers with better unemployment insurance and wage coverage. Fed Rate Cuts Coming? The Fed is expected to keep interest rates steady this week. The "dot plot" will show their long-term outlook. The Fed raised rates to a 23-year high, aiming to tame inflation. The dot plot, a survey of officials, shows their future expectations for rates, inflation, and growth. The last survey showed three expected rate cuts this year, but inflation was higher than expected. Inflation has slowed a bit but is still above the Fed's 2% target. Job gains have been strong, so no immediate rate cuts are likely. Markets expect only one or two rate cuts this year. The Fed's forecasts will influence stock and currency markets. Bitcoin Turmoil Ahead Bitcoin investors are on edge as the Federal Reserve prepares its interest rate decision. A key US inflation report is also due soon. Bitcoin’s recent movements are opposite to the 10-year Treasury yield. This unusual pattern suggests potential volatility. Both inflation data and Fed policy could impact bonds, which may in turn affect Bitcoin. Bitcoin fell 4.2% to $67,210 recently. Smaller coins like Ether and Dogecoin also dropped. Bitcoin hit a record high in March but hasn't reached new peaks in months. Analysts say the next 36 hours are crucial. Bitcoin ETFs saw huge inflows, but $65 million was pulled recently. Higher borrowing costs could challenge Bitcoin, which has already quadrupled in value this year. Apple AI Shakes Up Market Apple has joined the AI race, planning to bring personalized AI to 2.2 billion devices. They’ve teamed up with OpenAI to enhance their AI features. The new system, “Apple Intelligence,” will help users complete tasks using personal info. It can answer complex queries, compose messages, and more. Apple will keep user data private, processing most tasks on the device. An updated Siri will understand natural language better. It will also connect to ChatGPT for more complex requests. Apple aims to integrate other AI systems soon. Privacy is key, with data only sent to Apple's private servers when necessary. ChatGPT queries will be routed to OpenAI servers without sharing personal data. Apple hopes this move will boost its market value, which has lagged behind rivals like Microsoft and Google. Quick Sizzles: - Gold Miners Missing Out: Gold prices are up 20%, but miners lag behind. Predictions of gold hitting $3,000 an ounce by 2025 could change that. Operational challenges and cost inflation are big hurdles for miners. - Moderna’s Combo Vaccine Win: Moderna’s combined Covid-19 and flu shot works as well as separate shots. In a trial with over 8,000 adults, it showed higher effectiveness against flu. Approval could come by 2025, helping Moderna diversify beyond Covid. - Southwest Shake-Up Demanded: Elliott Management wants new leadership and strategy at Southwest Airlines. They criticize the CEO’s poor performance and rising costs. Elliott holds an 11% stake and sees potential for stock improvement. - US-China Graphite Clash: US imposes tariffs on Chinese graphite, key for EV batteries. With 97% of anode output from China, this move pressures US battery makers to find new sources quickly. - Hedge Funds Bet Against Eurozone: Hedge funds increase bets against Eurozone bonds, expecting limited ECB rate cuts. Bets hit $413 billion, the highest in two years. Short positions on German and Italian bonds rise amid inflation concerns. - Meme Stocks’ Glow Fades: Meme stocks like GameStop and AMC entertain investors again, but thematic funds struggle. Assets in US thematic funds dropped from $200 billion in 2021 to $120 billion. High volatility and poor returns plague these funds. That's a wrap for today's Market Sizzle! Invite your friends and earn rewards If you enjoy Josh Belanger, share it with your friends and earn rewards when they subscribe. [Invite Friends](   [Like]( [Comment]( [Restack](   © 2024 Josh Belanger 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()