The U.S. Bureau of Labor Statistics released the latest CPI data last night (11), showing that inflation continues to slow. Specifically: the overall CPI in June fell 0.1% from May, lower than the expected increase of 0.1%; compared with the same period last year, it rose 3.0%, also lower than the expected 3.1%.
The core CPI rose 0.1% from May, also lower than the estimated increase of 0.2%, hitting the lowest increase in nearly three years.
Federal Reserve Chairman Powell has previously said that the central bank wants to see more news of slowing inflation, and the latest CPI data provides the necessary basis for their monetary policy.
We now believe that this inflation report paves the way for the first rate cut in September, followed by quarterly cuts. If the August CPI report continues to remain weak, the Fed may cut interest rates three times this year:
The June CPI report is good news for the Federal Reserve, and it is good news for consumers and the overall economy. This report basically supports Powell's view that 2% inflation is achievable.
Powell has already hinted at a rate cut in September, and if we get another good inflation report in August, I think we will probably see at least two rate cuts this year, and possibly three.
If overall economic indicators weaken in the next month, the Fed may also take surprising measures.
Bitcoin surges and then falls
In the cryptocurrency market, Bitcoin once jumped after the CPI data was released, reaching a high of $59,579.
But then selling pressure emerged and the US stock market performed poorly, and Bitcoin began to fluctuate and fall again
