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#CPI Data Drops 🇺🇸 Inflation in the USA is slowing down: CPI for March – 2.4% 📉
In March, consumer prices in the US rose by only 2.4% year-on-year, which is lower than both the February level of 2.8% and the market forecast of 2.6%. This is the lowest level since the beginning of 2021 and an obvious signal: inflation is slowing down 📊❄️. However, the market perceived this news without much enthusiasm 🤔.
📉 Why didn't the market react vigorously?
The surprise is not that big: The decline was already expected, just a bit weaker than forecast.
Core inflation remains stubborn: If you remove volatile food and energy, core inflation still holds above the target of 2% 🧱
Markets have already "priced in" the rate cuts: And now they are waiting for confirmation of the Fed's actions, not just data.
🏦 What does this mean for the Fed and interest rates?
Expectations for a rate cut have strengthened, but are still far from certainty:
✅ A plus for "doves" (doves) — inflation is cooling down, which means we can think about the first cut as early as June-July 2025 🕊️
⚠️ But — the Fed wants to see a sustainable decline, especially in core Inflation. One report is not a trend.
➡️ Conclusion: expectations for a rate decrease remain, but rather 1–2 cuts in 2025, rather than a large-scale easing 💡
🪙 How does this affect the crypto market?
🟢 Positive signal for Bitcoin and altcoins:
📉 Softer Fed policy = lower bond yields = more interest in risk assets ( including crypto).
🪙 BTC, ETH and others often react with growth to such macro news, especially if it indicates cheaper dollars 💵
⚠️ But the growth is restrained: traders want confirmation not only on inflation but also on the policy of the Fed itself. For now, it remains "hawkish" (hawkish) — crypto is in wait 🚦