U.S. inflation rose 3.8% in April, exceeding forecasts and outpacing wage growth for the first time in three years. The Federal Reserve will likely delay rate cuts further into 2026 as elevated bond yields pressure risk assets. Figure Technology Solutions reported a 113% jump in Q1 tokenization volumes, signaling resilience in blockchain lending.
Inflation's Bite
Gas hit $4.50 a gallon this month, up from $3.14 a year ago. Workers are losing purchasing power as prices outpace wages for the first time since 2023. Cumulative inflation since 2020 now stands at 29%—$100 items from then cost $129 today. Food prices rose 0.5% while energy costs climbed 3.8%. Supply chain disruptions from the Iran conflict are raising plastics and manufacturing costs due to chemical shortages. The U.S. delayed beef tariff cuts meant to ease grocery prices.
Figure's Blockchain Momentum
Figure Technology Solutions processed $2.9 billion in tokenized assets in Q1, nearly doubling year-over-year. Bernstein maintains its $67 price target on FIGR stock, citing the platform's ability to withstand macroeconomic pressure. This growth defies the broader market tension, where investors grapple with rising costs and stagnant wage gains.
Bond Market Stress Test
UK 30-year bond yields reached their highest level since 1998. The Bank of Japan signaled potential rate hikes as early as June, blaming the oil shock for justifying tighter policy. These moves amplify pressure on risk assets globally. The timing isn't great for crypto markets already strained by the Fed's delayed pivot.
The Bank of Japan's next policy meeting on June 10 could bring its first rate increase in years.
