A Bitcoin, Blockchain and Cryptocurrency Education Hub

Core Inflation Still Above Fed's Target, But Starting to Come Down

The latest consumer price index (CPI) report, released on July 12, 2023, showed that inflation slowed to 3% in June from 4% in May. This is the lowest level of inflation since March 2021.

Core CPI, which excludes food and energy prices, also slowed to 4.8% in June from 5.3% in May. This is still above the Federal Reserve's target of 2%, but it is a sign that inflation may be starting to come under control.

The slowdown in inflation is likely due to a number of factors, including the easing of supply chain disruptions and the decline in energy prices. However, it is too early to say whether this is a temporary trend or a sign that inflation is coming down for good.

Photo by Jonathan Kemper / Unsplash

Fed Still Expected to Raise Interest Rates Later This Month

The Fed is still expected to raise interest rates later this month, as it looks to bring down inflation. However, the latest CPI data may give the Fed some breathing room, as it shows that inflation is starting to come down.

The Fed is likely to raise interest rates by 0.50% at its next meeting on July 26-27. However, if inflation continues to fall, the Fed may decide to raise rates by a smaller amount or even pause its rate-hiking cycle.

Good News for Investors?

The slowdown in inflation is good news for investors, as it suggests that inflation may be starting to come under control. This could lead to lower interest rates, which would be good for stocks and other risk assets.

In particular, Bitcoin and other cryptocurrencies could benefit from this news, as they are often seen as a hedge against inflation. If inflation continues to fall, it could lead to a renewed interest in cryptocurrencies, which could boost their prices.

Overall, the latest CPI data is a sign that inflation may be starting to come under control. This is good news for investors, as it could lead to lower interest rates and a boost for stocks and other risk assets.

A pile of Bitcoin coins.
Photo by Kanchanara / Unsplash

Here is a link to the latest CPI report: https://www.bls.gov/news.release/cpi.nr0.htm

Want to learn technical analysis and become a better trader in cryptocurrencies?

Our Premium Technical Analysis in Cryptocurrencies Course will teach you everything you need to know to start trading crypto like a pro.

In this course, you will learn:

The basics of technical analysis
How to use charts to identify trends and patterns
How to develop a trading mindset
How to manage your risk
And much more!

The course is taught by experienced traders who have been in the market for years. They will share their knowledge and expertise with you so that you can start trading crypto with confidence.

Sign up for the course today and start learning how to trade crypto like a pro!

Click here for more details.

You’ve successfully subscribed to Markets Unplugged
Welcome back! You’ve successfully signed in.
Great! You’ve successfully signed up.
Success! Your email is updated.
Your link has expired
Success! Check your email for magic link to sign-in.