Q4 GDP rose just 1.4%, well below expectations and sharply down from the prior quarter — raising stagflation concerns. Equities paused while gold strengthened, signaling a defensive shift in capital.
Despite continued AI investment support, weakening consumption, softer exports, and sticky inflation leave the Federal Reserve in a policy dilemma.
A higher-for-longer rate environment could tighten liquidity, keeping risk assets — including crypto — volatile before the next expansion phase.