The April CPI was not enough to change expectations for a Fed rate cut, but still leaves open the possibility of a rate cut later this year, said WSJ correspondent Nick Timiraos. Two more CPI reports are needed to bolster confidence. The Fed will probably not cut interest rates before September. Americans continue to face significant price pressure, especially gasoline prices.
The Federal Reserve's preferred measure of inflation likely showed price pressures eased in April, more so than the Labor Department's consumer price index. Core inflation — measured by the personal consumption expenditures (PCE) price index, to be released by the Commerce Department later this month — likely rose about 0.2% in April, according to forecasts from the Department of Commerce. a dozen inflation analysts.
This could keep the 12-month change steady at 2.8%, the same as March, or ease slightly to 2.7%.
The April consumer price index (CPI) rose 0.3%, slightly lower than expected, while 12-month inflation rose 3.4%, in line with economists' forecasts. It was the first time this year that the data was no hotter than expected, increasing the likelihood of a Fed rate cut later this year, although inflation remains above its 2% target.
As Bitcoin Magazine reported yesterday, Cane Island Alternative Advisors founder and investment manager Timothy Peterson said just one key indicator is enough to predict whether Bitcoin can surpass its all-time high is 73,700 USD by the end of 2024 or not, and it all depends on the US Federal Reserve (Fed).
“High US bond yields are a great indicator, and really need to fall below 6 or 7% for a new sustainable high,” Timothy Peterson said. He explained that the main indicator he is interested in to evaluate the price of Bitcoin is the movement of interest rates.
At the time of writing, the US yield – which represents the rate of high-risk corporate bonds because of their higher risk of default – was 7.54%, according to YCharts data.
Peterson predicts that if yields fall in the “6 or 7%” range, Bitcoin could see its long-awaited $100,000 price by the fourth quarter of 2024 or, at the latest, the second quarter of 2025.
Bitcoin crossed the $66,000 mark on May 16 as US core inflation hit a three-year low.
Source: https://tapchibitcoin.io/ky-vong-cat-giam-lai-suat-cua-fed-khong-thay-doi-bat-chap-chi-so-cpi-thang-4.html
