đ„đ„đ„ US #cpi Expected To Spike, Will It Impact Fed's Rate Cut Decision?
Anticipated July US CPI Inflation and Its Impact on Fed Rate Decisions
Inflation Expectations: The July US Consumer Price Index (CPI) inflation data, set to be released on August 14, is expected to show a 0.2% increase, up from -0.1% in June. Year-over-year (YoY), inflation is forecasted to remain steady at 3%. Core CPI, excluding food and energy, is projected to rise to 0.2% from 0.1%, with a slight YoY decrease to 3.2%.
Federal Reserve Impact: Despite the anticipated increase in monthly inflation, analysts believe it may not significantly impact the Federal Reserveâs rate decisions. The Producer Price Index (PPI) for July is also expected to remain unchanged at 0.2%. The CME FedWatch Tool indicates a 51% chance of a 25 basis point rate cut by the Fed in September, with a 49% chance of a 50 basis point cut due to weaker job data and recession concerns.
Crypto Market Influence: Recent global market volatility, influenced by the Bank of Japanâs rate hike and recession fears, has impacted #cryptocurrencies. Bitcoin, for instance, dropped to $49,100 but rebounded to around $62,000, with potential to reach $64,000 or even $70,000. The upcoming CPI data and Federal Reserve decisions could further affect crypto market sentiment.
Conclusion: The July CPI inflation report will be crucial for assessing its influence on Federal Reserve rate decisions. Current projections suggest that while inflation may rise modestly, it may not drastically alter the Fedâs stance, impacting both traditional and #CryptoMarkets .
Source - coingape.com
