US Inflation Data Eases Concerns; Crypto Economy Jumps 11% Higher While Market Analysts Anticipate Fed"s Next Decision
The U.S. Labor Department released the consumer price index (CPI) report on Tuesday. Although inflation increased in February year-over-year, the rise was expected, and the annual inflation rate for all items was 6%. The cooling inflation has eased some concerns, but fears of financial contagion have spread. Market strategists are further anticipating the U.S. central bank’s decision regarding the federal funds rate. Market Awaits Fed’s Decision on Interest Rates After CPI Report
In February, inflation was consistent with expectations, with the consumer price index (CPI) increasing by 0.4% last month, equating to a 6% annual pace, according to the latest report from the U.S. Bureau of Labor Statistics. “Over the last 12 months, the all-items index increased by 6% before seasonal adjustment,” the CPI report states. “The index for shelter was the primary contributor to the monthly all-items increase, accounting for over 70% of the rise, while the indexes for food, recreation, and household furnishings and operations also contributed.”
The overall sentiment of the equity market has improved as three of the four U.S. benchmark stock indexes, except for the Russell 2000, saw gains. However, on Monday, three of the four benchmark indexes were down, except for the Nasdaq Composite. Additionally, Monday marked the largest three-day decline in the two-year Treasury yield since “Black Monday” in 1987. However, on Tuesday, following the CPI report, the two-year Treasury yield rebounded.
According to Kevin Cummins, chief U.S. economist at Natwest Markets, although consumer inflation has decreased, it did not significantly impact the market. “As far as how important we thought this one [CPI] was going to be, it definitely now is not nearly as much of a market mover, given the backdrop,” Cummins stated in an interview with CNBC. The Natwest Markets analyst also anticipates that the Fed will not raise the federal funds rate in March. While equity markets showed some improvement after the Labor Department’s CPI report was released, precious metals like gold and silver experienced a small dip at 9:00 a.m. (ET) on Tuesday.
The day prior, on Monday, the price of gold rose by 2%, and the cost of silver per ounce increased by 6% against the U.S. dollar. However, according to the New York Spot Price, both precious metals experienced a decline at 9:00 a.m. on Tuesday, with gold falling by 0.80% and silver decreasing by 0.71%. Conversely, cryptocurrencies saw a significant rebound, with the global crypto market cap increasing by 11.17% to $1.13 trillion. Bitcoin (BTC) rose by 14.72% above the $26,000 per unit zone, and the second-leading crypto asset, ethereum (ETH), spiked 8.43% higher to $1,744 per ether. Tags in this story all-items index, annual inflation rate, Bitcoin, Black Monday, Bureau of Labor Statistics, cnbc, consumer price index, CPI, crypto market cap, Cryptocurrencies, equity market, Ethereum, Federal Funds Rate, Federal Reserve, financial contagion, food index, Global Economy, gold, household furnishings and operations index, inflation, Kevin Cummins, market analysts, market sentiment, market strategists, Nasdaq Composite, Natwest Markets, New York Spot Price, recreation index, Russell 2000, shelter index, silver, two-year Treasury yield, U.S. benchmark stock indexes, U.S. Central Bank, U.S. economy
What do you think will be the U.S. central bank’s decision regarding the federal funds rate, and how do you think it will affect the overall economy and financial markets? Share your thoughts in the comments below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Moody"s Downgrades US Banking Sector to Negative After Collapse of Three Major Banks NEWS | 2 hours ago Federal Investigators Probe Silicon Valley Bank Collapse; SVB and Top Execs Sued by Shareholders NEWS | 4 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFNCT (Financie Token) Exceeds JPY 20 billion (USD 150 million) in IEO Applications Next articleFederal Investigators Probe Silicon Valley Bank Collapse; SVB and Top Execs Sued by Shareholders Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItBitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals
A bitcoin ATM operator has been indicted in New York for running an illegal business "marketed towards individuals engaged in criminal activity." The district attorney in charge described: "Robert Taylor allegedly went to great lengths to keep his bitcoin kiosk ... read more.Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether