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%.

Under pressure this morning, bitcoin BTC$80,621.04 traded at $80,700 following the report, down 1.2% over the past 24 hours.

U.S. stock index futures were down across the board, and the 10-year treasury yield came in higher at 4.44%. WTI crude oil is posing a threat to the markets, and is higher by 3% on the day at $101.

Ahead of the CPI data, markets were pricing in a 98% probability that the Federal Reserve would leave interest rates unchanged at its March meeting, according to the CME Fed Watch tool.

Kevin Warsh is set to be confirmed as the next Federal Reserve Chair this week, as he is expected to take over from Jerome Powell on May 15.

More For You

The online marketplace's board called the half-cash, half-stock offer "neither credible nor attractive" Tuesday.

What to know:

• EBay’s board rejected GameStop’s $56 billion half-cash, half-stock takeover bid as “neither credible nor attractive,” citing financing concerns and confidence in its current strategy.
• The market signaled skepticism that the deal will close, with eBay shares trading well below GameStop’s $125-per-share offer and both stocks slipping after the rejection.
• GameStop’s...

France’s central banker Beau clashes with Lagarde over private digital euro plans

32 minutes ago

EBay rejects GameStop’s $56 billion bid, putting bitcoin exposure back in focus

42 minutes ago

Kraken parent, Franklin Templeton to develop onchain investment products

47 minutes ago

Elliptic raises $120 million backed by Nasdaq, Deutsche Bank as AI reshapes crypto security

47 minutes ago

CoinDesk 20 performance update: SUI drops 4.9%, as index trades lower

1 hour ago

CleanSpark stock slides 9% as quarterly earnings miss estimates on bitcoin holdings loss

1 hour ago

'Bitcoin transactions can be monitored’: Ray Dalio explains why central banks won’t touch BTC

8 hours ago

Clarity Act, in the flesh, unveiled by U.S. Senate Banking Committee before hearing

9 hours ago

Bitcoin will 'explode' past $90,000 and hit $126,000, Arthur Hayes says

2 hours ago

'A big nothing burger': A Q&A with Strategy's Michael Saylor on selling bitcoin

17 hours ago

ETH/BTC ratio falls to 10-month low as ether continues to underperform bitcoin

3 hours ago

Bitcoin miner MARA sold $1.5 billion of bitcoin as it shifts toward AI infrastructure

6 hours ago

In this article

BTCBTC$80,621.04◢0.36%