Hot inflation data pours cold water on Federal Reserve rate cut hopes Bitcoin was trading at $80,814 following the news, down 1.2% over the past 24 hours.
What to know: – April CPI rose 0.6% for the month and 3.8% year-over-year. – Markets continues to price in no Fed rate cuts for the June 17 meeting. – Bitcoin was trading at $80,600 following the report
U.S. inflation data came in hotter than expected on Wednesday, reinforcing expectations that the Federal Reserve will keep interest rates steady at 350-375bps not only at its June 17 meeting, but also likely through the end of the year. The Consumer Price Index (CPI) year-over-year rose 3.8% in April, according to a report from the Bureau of Labor Statistics. Economists’ forecasts had been for a rise of 3.7% following March’s 3.3% increase.
On a month-over-month basis, CPI rose 0.6%, above expectations of 0.3% and up from March’s 0.2%. Core CPI, which excludes food and energy costs, rose 0.4% in April versus forecasts of 0.2% and March’s 0.3%. Year-over-year core CPI was higher by 2.8% versus forecasts of 2.7% and March’s 2.6%.