TSLA - U.S. Inflation Drop Paves Way For Federal Reserve Rate Cuts: Will Cannabis Stocks Benefit? | Benzinga
The recent drop in U.S. inflation has sparked discussions about potential interest rate cuts by the U.S. Federal Reserve Bank. As inflation cools, investors are reconsidering their portfolios, with cannabis stocks emerging as a potential opportunity.
Cooling Inflation Trends
Inflation in the U.S. has decreased for three consecutive months, with a 0.1% decline from May to June. This marks the first monthly drop since the pandemic's peak in May 2020. Year-over-year, prices rose by 3% in June, down from 3.3% in May.
Federal Reserve's Response
With inflation approaching the Fed's 2% target, there is growing anticipation that the central bank may start cutting interest rates as early as September. Lower interest rates generally encourage investment in growth sectors, such as cannabis.
Investor Shifts
Traditionally, high inflation drives investors towards big tech stocks due to their strong pricing power and cash reserves. However, as inflation cools and rate cuts loom, investors may shift towards smaller, emerging sectors like cannabis, which offer higher growth potential.
Cannabis Sector Potential
The cannabis industry, particularly U.S. Multi-State ...