According to The Kobeissi Letter, Goldman's basket of stocks, which perform well in a 'Stagflation Scenario,' are experiencing significant gains. This development complicates the Federal Reserve's strategy, as higher interest rates might trigger a recession, while lower rates could exacerbate inflation. The current economic environment poses a dilemma for interest rate policy, impacting trading strategies in equity markets.

According to The Kobeissi Letter, Goldman's volatility panic index has surged from a December low of approximately 1.4 to around 9.1, and is nearing 10. This increase indicates potential wider swings in the cryptocurrency markets, suggesting that volatility is becoming the new norm for traders (source: The Kobeissi Letter).