The best two inflation figures of recent years have been recorded this year. These inflation figures provide a strong foundation for the Fed to ease monetary policies. The decline in core inflation, in particular, indicates that the Fed is closer to its inflation targets, increasing the likelihood of starting rate cuts. Citi Group's expectation of eight consecutive rate cuts is strongly priced into the markets. The anticipated rate cut in September could stimulate markets and support economic growth. However, it will be crucial to monitor the long-term impacts of these policies on inflation.
Let's take a closer look: #CPI_BTC_Watch
1️⃣ Headline Monthly Inflation: -0.1%
- This last occurred during the COVID period in 2020.
2️⃣ Core Monthly Inflation: 0.1%
- This is the lowest in three years. Core inflation is more significant as the Fed tracks it. Core inflation excludes energy and food.
What do these figures mean?
Conclusion #Ethereum_ETFs_Expected_Date
A #Fed rate cut in September is almost certain now: an 81% probability.A second rate cut is expected in November. This could change, but at least one more rate cut is likely before the end of 2024.
Citi Group announced last week that it expects eight consecutive rate cuts starting in September. Clearly, they have some inside information.
Finally, expectations for the coming months are not high. The Cleveland Fed forecasts are around 0.2%. The levels that alarmed the Fed in recent months and led to hawkish policies were around 0.4% for three consecutive months.
