The lower-than-expected CPI shows that the current state of the US economy is that, on the one hand, the job market is still hot and the economic potential is great, while inflation is also under control and there is no risk of stagflation.
This is almost the result that the Fed wants to see most. Powell is probably celebrating happily in his office at this moment.
On the other hand, the CPI in May should not affect the FOMC's decision tonight, but it will slightly affect the attitude at the press conference, because there will definitely be reporters who will ask, "Chairman Powell, what do you think of the CPI in May? Does this mean that the Fed will accelerate the process of interest rate cuts?"
According to the consistent style of "looking at the data", Powell may not express an extremely dovish attitude when the data is favorable, but will slightly knock it to balance expectations.
In short, this CPI gives BTC the opportunity to challenge new highs again, but it is unknown whether this opportunity can be seized. Don't think that interest rate cuts represent a bull market. The key is to see whether liquidity has recovered and whether money has come in!
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