Last month, U.S. inflation actually fell at the title level, with little increase in core interest rates, which could spark debate over whether the Fed will resume revised rates at its next meeting in May.
The Consumer Price Index (CPI) fell 0.1% in March. After a 0.2% increase in February, economists are expected to increase by 0.1%. Compared with forecasts of 2.6% and February 2.8%, a year-on-year increase of 2.4%.
Core CPI, which is out of volatile food and energy prices, climbed only 0.1% in March, compared with a forecast of 0.3%, and a reading of 0.2% in February. CORE CPI rose 2.8% year-on-year, with expectations for 3% and 3.1% in February far exceeding expectations.
Within minutes of the news, Bitcoin (BTC) was priced just above $82,000. U.S. stock index futures were under pressure on Thursday morning, with Nasdaq stock 100-2.7% and S&P 500 2.1%.
Of course, Thursday morning’s CPI report contained data ahead of President Trump’s “Liberation Day”, which announced a tariff announcement last week that threw the market into a multi-day panic, part of which was retracted yesterday after the president’s 90-day pause.
Before tariff pauses and market recovery rates, traders have been pricing at the next meeting in May at a rate of cuts. However, before CPI data, these odds Been back Only 17%. Currently, June looks like an action meeting, and by the end of the event, there is a 75% chance of slowing down 25 basis points or more.
Going forward, attention turned to Friday’s producer price index (PPI) report, which could further shape expectations for Fed policy in May.
