The latest US core Consumer Price Index (CPI) came in at 3.1%, below the expected 3.2%, indicating cooler inflation. This data has led to increased expectations for Federal Reserve interest rate cuts, with markets now pricing a 31.4% chance of a cut in May and a significant rise in the likelihood of three cuts by year-end to 32.5%. Despite this positive inflation news, Bitcoin's price has remained around $83,000 amid uncertainty surrounding US President Donald Trump and broader economic conditions. Federal Reserve officials, including Chairman Jerome Powell, have suggested caution regarding rate cuts. Additionally, the US government faces $9.2 trillion in debt maturing in 2025, and President Trump has prioritized interest rate reductions to manage this debt effectively. Analysts express concern that failure to cut rates could negatively impact asset values, emphasizing the balancing act the Federal Reserve must perform in its monetary policy decisions.

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