U.S. Inflation Data Triggers Market Moves and Fed Speculation
Fresh U.S. inflation data has sparked immediate reactions across financial markets, with investors reassessing the outlook for the Federal Reserve, the central bank responsible for U.S. monetary policy and price stability. Shifts in inflation readings influence expectations around interest rates, bond yields, equities, and crypto assets.
From a money supply and liquidity perspective, softer inflation strengthens the case for future rate cuts, which would ease financial conditions and increase liquidity in the system. This often supports risk assets like stocks