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After the Federal Reserve's open letter was released, both the US stock market and $BTC experienced a fall, mainly because the letter mentioned that the risks of rising unemployment and inflation in the US have increased.
In plain terms, it means that inflation and the unemployment rate are likely to rise together. The rise in inflation is probably due to tariffs, while the increase in the unemployment rate should be a result of economic decline. This leaves The Federal Reserve (FED) with possibly only one choice in the end.
Recession. Further rate cuts.