U.S. September CPI Rises Below Expectations; Bitcoin and Equities Gain
The U.S. Consumer Price Index (CPI) for September came in softer than expected, bolstering market expectations that the Federal Reserve will implement rate cuts in its final two meetings of the year.
Despite a government shutdown limiting broader economic releases, the Bureau of Labor Statistics published the report. Headline CPI increased 0.3% month-over-month, below the 0.4% forecast and August’s 0.4% rise. On a year-over-year basis, CPI rose 3.0%, slightly under the expected 3.1% and up from 2.9% in August.
Core CPI, which excludes food and energy, rose 0.2% month-over-month, versus the anticipated 0.3% and August’s 0.3%. Year-over-year, core CPI was 3.0%, below the projected 3.1%.
Bitcoin (BTC $111,580.60) extended its gains following the report, trading near $111,600.
Equities also reacted positively: Nasdaq 100 futures climbed nearly 1%, the 10-year Treasury yield fell two basis points to 3.97%, and the U.S. dollar weakened slightly.
Ahead of the data, traders had priced in a 100% probability of a 25-basis-point rate cut at the Fed’s next meeting, and roughly a 90% chance of an additional cut at the Fed’s final policy meeting of the year, according to CME FedWatch.
