The CPI announced by the US Bureau of Labor Statistics last night met market expectations. The three major US stock indexes have risen for three consecutive days, with the S&P 500 and Dow Jones Industrial Average closing at their highest levels since January 2022. Cryptocurrencies have entered a consolidation pattern this week, with BTC maintaining above 41K and ETH struggling around 2,200.
CPI meets expectations, awaiting the Federal Reserve’s interest rate decision
The US Bureau of Labor Statistics released the Consumer Price Index (CPI) data last night. The CPI for November rose 0.1%, a 3.1% increase from the same period last year. Excluding the more volatile food and energy prices, the core CPI rose 0.3% from the previous quarter and 4% from the same period last year. These figures are in line with market expectations and are similar to those of October.
Meanwhile, the Federal Reserve is holding a two-day interest rate meeting and will announce the latest interest rate policy and economic forecasts early Thursday morning.
According to the CME FedWatch Index, 98.4% of investors are convinced that the Federal Reserve will maintain interest rates in the high range of 5.25% to 5.5%. However, investors will pay attention to Chairman Powell’s remarks at the post-meeting press conference, as well as the interest rate dot plot (which will show each committee member’s interest rate projections for next year) and economic forecasts released during this meeting.
Currently, the market generally believes that the Federal Reserve may start an interest rate cut cycle as early as May next year.
BTC, CPI, ETH, Federal Reserve
Further reading
JPMorgan: Bitcoin halving and approval of spot ETF already price-in, ETH expected to outperform BTC next year
Cryptocurrency market plummets, Bitcoin erases one week of gains, is the BTC pullback due to filling the CME gap?