U.S. inflation meets expectations, keeping Fed rate cuts on hold as bitcoin slips holds $61,000
Summary
U.S. inflation data matched expectations and supported the view that the Federal Reserve will keep rates unchanged at 350-375 bps at its June 17 meeting, while still leaving room for a 25 bps hike later this year. May CPI rose 4.2% year over year, down from 3.8% in April, while monthly CPI increased 0.2%, below forecasts of 0.5% and April’s 0.6%. Core CPI rose 0.2% month over month and 2.9% year over year, both in line with or slightly below expectations. Markets reacted cautiously: bitcoin ticked slightly higher but stayed near $61,000, U.S. stock futures fell, the 10-year Treasury yield climbed to 4.5%, and WTI crude slipped to $88.
