U.S. inflation meets expectations, reinforcing Fed’s higher-for-longer stance
Bitcoin was trading at $61,700 following the news, slightly down over the past 24 hours.
What to know:
- May CPI rose 0.5% for the month of May and 4.2% year-over-year.
- Markets are pricing in no fed rate hike for the June 17 meeting.
- Bitcoin was trading around $61,700 following the report.
On a month-over-month basis, CPI rose 0.2%, against expectations of 0.5% and against April’s 0.6% rise. Core CPI, which excludes food and energy costs, rose 0.2% in May versus forecasts of 0.3% and April 0.4%. Year-over-year core CPI was higher by 2.9% versus forecasts of 2.9% and April’s 2.8%.
While bitcoin saw a slight uptick after the data was published, it still remains under pressure. Bitcoin traded just above $61,000 following the report, mostly unchanged over the past 24 hours. U.S. stock index futures were down across the board, and the 10-year Treasury yield rose to 4.5%. WTI crude oil continues to head lower, down a further 1% on the day at $88.
Ahead of the CPI data, markets were pricing in a 98% probability that the Federal Reserve would leave interest rates unchanged at its June meeting, according to the CME Fed Watch tool.
