The US Department of Labor (BLS) announced the highly anticipated inflation figures, with the annual inflation figure for April coming in at 3.4%. This was also the expectation. Core inflation, one of the most important data for the Fed, increased by 3.6% as expected. Thus, it was the 37th consecutive month with inflation above 3% in the US.

Will rate cuts come: Rise in Bitcoin

The announcement of inflation data as expected brought an increase in Bitcoin. The largest cryptocurrency rose from $ 62,500 to 64,600. After the figures, the markets started pricing in two interest rate cuts for 2024. The expectation is that the Fed will cut interest rates by 25 basis points each in September and December…

These figures also point to the 3rd consecutive decline in inflation. However, the opposite was the case in the PPI in the US, which rose for the 3rd consecutive month. The impact of this on consumer inflation will become clearer in the coming months.

The Fed, on the other hand, is currently adopting a wait-and-see strategy and continues to make decisions “from meeting to meeting” as Powell, the chairman of the institution, said. The Fed’s next meeting and interest rate decision will come on June 12th.