U.S. Inflation Comes in Lower Than Expected

New U.S. inflation data released this morning shows prices are rising more slowly than economists predicted.

Key Inflation Data (8:30 AM ET)

Consumer Price Index (CPI):

Expected: 3.1% year-over-year

Actual: 2.7% year-over-year

Core CPI (excluding food and energy):

Expected: 3.0% year-over-year

Actual: 2.6% year-over-year

Labor Market Update

Weekly jobless claims came in roughly in line with expectations, suggesting no sudden deterioration in employment conditions.

Why This Matters

The cooler inflation numbers give the Federal Reserve more flexibility to cut interest rates. If the labor market continues to soften, the likelihood of rate cuts increases further.

Fed Commentary

Kevin Hassett said it is now appropriate for the Federal Reserve to begin lowering interest rates.

Markets, including Bitcoin ($BTC), are closely watching these developments as lower rates typically support risk assets.