(CPI is favorable, BTC rises in response)
The core CPI of 2.6% is the lowest level since 2021, which is quite a surprise, considering that previously it was thought that a figure in the low 2's, like 2.9%, would be good enough. Given this data, the market probably doesn't even care about the inaccuracies due to the government shutdown. Personally, I speculate that such a low inflation figure may be related to the relatively low prices during the Thanksgiving sales and the decline in crude oil prices.
In any case, the cliff-like drop in inflation has strongly countered the narrative of a second inflation from hawkish figures, allowing the Federal Reserve to confidently enter a cycle of rate cuts and balance sheet expansion.
Also, because 'moderate inflation' is a pleasant indicator in economics, if the stock market can rise again, there will definitely be a great scholar debating this.
Right after the CPI data was released, U.S. Treasury yields and the dollar index fell in response, while gold prices rose, as if the familiar rhythm has returned.
