According to @KobeissiLetter, the Federal Reserve is set to cut interest rates even as inflation rebounds, a setup the stock market will favor with a risk-on response. According to @KobeissiLetter, wage growth will lag inflation in this environment, meaning asset owners are positioned to benefit while non-owners face eroding real incomes. According to @KobeissiLetter, the result mirrors the post-pandemic dynamic where the wealth gap expands as asset prices rise faster than wages.

According to @KobeissiLetter citing @Kalshi, oil prices are forecasted to rise to $94.10 this year following Israeli attacks on Iranian energy infrastructure. This sharp increase in oil is expected to trigger a rebound in inflation, which could lead to greater volatility in cryptocurrency markets as investors reassess risk and seek inflation hedges like Bitcoin (BTC) and Ethereum (ETH). Traders should monitor energy and inflation data closely, as historical trends show elevated oil prices often drive short-term bullish momentum in leading crypto assets while increasing volatility across the digital asset sector. Source: @KobeissiLetter on Twitter.

According to The Kobeissi Letter, leading inflation indicators are turning upward, with the New York manufacturers' prices paid index surging to 51 points in April 2025—the highest level since August 2022. Similarly, the Philadelphia manufacturing prices paid index also climbed to 51, its peak since July 2022 (source: The Kobeissi Letter on Twitter). Rising input costs in these key regional manufacturing hubs signal accelerating inflation pressures, which could prompt tighter monetary policy from the Federal Reserve. For crypto traders, this environment often leads to increased volatility as investors reassess risk assets like Bitcoin and Ethereum, given their historical sensitivity to inflation data and monetary policy shifts.