New research predicts U.S. inflation will make a comeback, challenging bitcoin bulls’ bets on deflation

According to a report by Jinse Finance, based on the latest analysis by Adam Posen of the Peterson Institute for International Economics and Peter R. Orszag of Lazard, U.S. inflation may rise above 4% this year. The researchers stated that tariffs from the Trump era, a tighter labor market, possible deportation of immigrants, large-scale fiscal deficits, and loose financial conditions could offset productivity gains from artificial intelligence and a decline in housing inflation, thereby driving up prices. Higher inflation may prevent the Federal Reserve from aggressively lowering borrowing costs as the market and crypto investors expect.