{"id":40560,"date":"2025-08-05T15:31:58","date_gmt":"2025-08-05T15:31:58","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=40560"},"modified":"2025-08-05T15:31:58","modified_gmt":"2025-08-05T15:31:58","slug":"does-the-fed-need-to-cut-now-bitcoin-crumbles-back-below-113000-after-ism-services-pmi","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=40560","title":{"rendered":"Does the Fed Need to Cut Now? Bitcoin Crumbles Back Below $113,000 After ISM Services PMI"},"content":{"rendered":"
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Adding to the shocking downward jobs growth revisions on Friday \u2014 which sent crypto prices tumbling \u2014 the ISM Services PMI all of a sudden is beginning to consistently indicate softer-than-though economic activity.<\/p>\n

The ISM Services for July <\/a>came in at 50.1, sizably lower than the 51.5 expected. A number above 50 indicates economic expansion, and below that level contraction.<\/p>\n

The soft print is notable as it’s now a three-month pattern of weakness, with May’s number having been 49.9 and June’s 50.8 \u2014 a sizable slowdown from previous months.<\/p>\n

\"ISM<\/p>\n

Compounding that sign of economic weakness was a stagflationary signal embedded in the report, the Prices Paid subindex, which shot up to a cycle high of 69.9.<\/p>\n

“Tariffs are causing additional costs as we continue to purchase equipment and supplies … the cost is significant enough that we are postponing other projects to accommodate these cost changes,” read one comment from the report.<\/p>\n

Neither crypto nor traditional markets took kindly to the Tuesday data, with bitcoin (BTC) pulling back from above $114,000 to $112,800, lower by nearly 2% over the past 24 hours. The Nasdaq reversed from earlier gains to a 0.5% loss.<\/p>\n

Fed cut now?<\/h5>\n

“The data always suffers big revisions when the economy is at an inflection point, like a recession,” wrote economist Mark Zandi after the big downward jobs revisions Friday.<\/p>\n

“The economy is on the precipice of recession,” he continued<\/a>. “Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall. With inflation on the rise, it’s tough for the Fed to come to the rescue.”<\/p>\n

Longtime managers at Hoisington Investment Management, Lacy Hunt and Van Hoisington aren’t so sure<\/a> the Fed can wait. Calling inflation gains from tariffs temporary and a first-round effect, Hunt and Hoisington say the second, third and later round contractionary effects are of far more import. <\/p>\n

“The Fed needs to be quickly moving to an accommodative policy,” they concluded. “The Fed will be ill advised to wait … The far more critical consideration is the coming contraction in global economic activity.”<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Adding to the shocking downward jobs growth revisions on Friday \u2014 which sent crypto prices tumbling \u2014 the ISM Services PMI all of a sudden is beginning to consistently indicate softer-than-though economic activity. The ISM Services for July came in at 50.1, sizably lower than the 51.5 expected. A number above 50 indicates economic expansion, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-40560","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40560"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40560\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}