Evidence of a slowdown is already visible at the regional level. On Friday, Aug. 29th, the Chicago Business Barometer, compiled by MNI Indicators, fell to 41.5 in August from 47.1 in July. The reading was well below the 50 threshold that separates expansion from contraction, signalling that business activity in the Chicago area is losing momentum. The consensus forecast was for a slight increase, underscoring the breadth of the slowdown. The combination of cooling regional activity, elevated tariffs, and steady inflation places the Federal Reserve in a difficult position ahead of its Sept. 1617 policy meeting. Fed Chair Jerome Powell has acknowledged risks to the labour market, while also warning that inflation pressures remain. With the central bankʼs benchmark interest rate held in the 4.25 to 4.5 percent range since December, markets are now watching closely for a possible rate cut next month. The broader picture suggests an economy propped up by technology-driven investment but weighed down by tariffs and weakening confidence elsewhere, particularly among manufacturers and regional businesses. Without a broadening of business investment beyond select sectors, the outlook points toward slower growth ahead—even as the data continues to offer short-term signs of strength.
Bitfinex Alpha #170 | BTC Slips, ALTs Stagnate
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