Inflation in the US rose by 3.8% year over year in April and outpaced wage growth, which was 3.6%. This has once again heightened concerns in the market that the energy shock amid the conflict around Iran is gradually seeping into prices from food to transportation and basic everyday goods.
Bernstein noted in its report that tokenization platforms in such conditions can partially decouple from macroeconomic pressure. The company reaffirmed its target price of $67 for Figure Technology Solutions (FIGR) and estimates a growth potential of about 72%, despite the worsening overall macro picture.
Inflation in the US Accelerates Again
The April CPI in the US increased by 3.8% year over year, slightly above market expectations of 3.7%. Wages, meanwhile, grew by 3.6%.
See Also: Nearly 40% of Trump’s Delegation to China Is Linked to the Crypto Industry
Against this backdrop, the gap between incomes and prices has started to widen again. For some American workers, this effectively means a return to a situation where wage growth no longer offsets inflation for the first time in several years.
For the first time in three years, inflation outpaces wage growth in the US. Source: X
Energy and Food Remain the Main Source of Pressure
Inflation is rising fastest in the energy sector, up 3.8% for the month. Food prices added another 0.5%. Gasoline now averages about $4.50 per gallon, compared to about $3.14 a year ago.
In the US the idea of a temporary suspension of the federal gas tax is being raised again. The idea is still the same: to slightly reduce pressure on consumers amid rising prices.
Additional background comes from supply chain disruptions due to the conflict around Iran. Not only energy and food are getting more expensive, but costs are gradually moving into the chemical industry, including plastics and basic industrial materials.
Separately, in the US discussion of lifting tariffs on beef imports has been postponed for now. Previously, this step was considered as one way to contain food prices.
UK 30-year yield is rising. Source: X
Inflation remains high, and there is increasing sentiment in the market that the Fed may postpone rate cuts until 2026. Against this backdrop, a strong dollar and high bond yields continue to pressure risk assets.
Analysts at Kobeissi Letter note that the overall price increase since 2020 has already reached about 29%, meaning goods that cost $100 now cost about $129. At the same time, the S&P 500 is still up about 8.3% since the start of the year.
See Also: BTC Funding Turns Positive for the First Time in a Month: Bitcoin Eyes $85,000
At Bernstein they believe the tokenization segment can partially exist independently of macro cycles. The Figure Technology Solutions platform, in their view, remains resilient even amid a worsening overall situation.
Everything will now depend on the macro picture. On one hand, the dynamics of inflation in the core components of the CPI; on the other, the development of the situation around Iran. These factors will ultimately determine both the policy of the Fed and how resilient the thesis of ‘macro-resilient’ tokenization platforms remains.
