Hot inflation data pours cold water on Federal Reserve rate cut hopes
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- U.S. CPI rose 0.6% month‑over‑month in April and 3.8% year‑over‑year, beating forecasts of 0.3% and 3.7%.
- Core CPI increased 0.4% month‑over‑month and 2.8% year‑over‑year, above expectations of 0.2% and 2.7%.
- Federal Reserve is now expected to keep its policy rate steady at 350‑375 bps at the June 17 meeting and likely through year‑end, with markets assigning a 98% probability of no cut at the March meeting.
- Bitcoin fell about 1.2% after the CPI release, trading near $80,600‑$80,800.
- 10‑year Treasury yield rose to 4.44% as WTI crude oil surged 3% to $101 per barrel.
Why it matters: Investors in Treasury bonds benefit from higher yields, while Bitcoin holders see a 1.2% drop, and the Fed’s decision to hold rates at 350‑375 bps keeps mortgage rates elevated, pressuring home‑buyers.
Ask SkimNews
