Inflation Cooldown Strengthens Case for September Fed Rate Cut, Bitcoin Firms
U.S. consumer prices showed minimal growth in May, reinforcing market expectations that the Federal Reserve will soon pivot to rate cuts — a development welcomed by both traditional and crypto markets.
According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 0.1% in May, under economists’ 0.2% forecast. On a 12-month basis, CPI came in at 2.4%, down slightly from the expected 2.5%. The core CPI, excluding food and energy, also advanced just 0.1%, significantly softer than the 0.3% consensus.
The report boosts hopes that inflationary pressures are easing steadily, even as markets remain sensitive to geopolitical developments and fiscal policies under the Trump administration.
Bitcoin (BTC) climbed to $109,800 on the news, while U.S. stock futures rose broadly and Treasury yields dipped, with the 10-year sliding five basis points to 4.45%. The CME FedWatch Tool still points to a September rate cut, with a follow-up in December now seen as increasingly likely.
