- The FOMC will decide on rate hikes at their meeting on June 14, 2023.
- The US Federal Reserve may be more inclined to suspend its rate-hike cycle.
U.S. Consumer Price Index (CPI) numbers for May 2023 were issued by the Bureau of Labour Statistics on Tuesday. The authorities said that the CPI for all urban consumers grew 0.1% in May after adjusting for seasonal factors and increased by 4% over the previous 12 months. As a result, the inflation numbers for the month were within expectations, and the annual rate of 4% is the lowest it’s been in roughly two years.
Price increases of 0.1% were anticipated by market players, a decrease from the 0.4% increase seen in April 2023. However, the market is expecting the Federal Open Market Committee (FOMC) will decide to suspend rate hikes at their meeting on June 14, 2023.
Crypto Market Trading in Green
The Consumer Price Index (CPI) tracks the cumulative percentage change in urban consumers’ spending on goods and services over time. The crypto market briefly surged post the data release. With Bitcoin and major altcoins trading in green.
The Bitcoin price has risen sharply over the last 24 hours, reaching the $26,000 area just before the publication of CPI statistics. Following the publication of the data, the price of Bitcoin increased by 3% from its daily low of $25,700, before correcting somewhat.
The US Federal Reserve may be more inclined to suspend its rate-hike cycle in light of recent reports of falling inflation and the lowest annual inflation rate in two years. There is an absolute certainty that the Federal Reserve will delay any more rate hikes at their next meeting, according to the CME FedWatch Tool. According to CMC, the price of Bitcoin is $25,921, up 0.75% in the last 24 hours.
