The inflation in the United States in July was largely in line with expectations, preparing the Federal Reserve for a possible interest rate cut at the upcoming mid-September meeting.

According to a report released by the U.S. government on Wednesday morning, the Consumer Price Index (CPI) rose by 0.2% in July. This is higher than the decrease of 0.1% in June but aligns with the expected 0.2%. On an annual basis, the CPI increased by 2.9%, lower than the expected 3% and June's 3%.

Core CPI (excluding food and energy costs) rose by 0.2% in July, as expected, compared to 0.1% in June. On an annual basis, the core CPI was 3.2%, consistent with the expected 3.2% and June's 3.3%.

The price of Bitcoin (BTC) continued to rise modestly to $61,200 after the release of this report that was largely in line with expectations.

Before the data release earlier today, discussions about whether the Federal Reserve would lower its benchmark federal funds rate range at the next meeting had concluded: there is currently no indication that it will remain at the current range of 5.25%-5.50%, according to data from CME FedWatch, which calculates odds based on short-term interest rate market positions. In fact, the index shows a 52.5% chance of a 50 basis point cut, and only a 47.5% chance of a 25 basis point cut.

This report is unlikely to have a significant impact on these calculations. Upcoming U.S. macroeconomic data will include initial jobless claims and retail sales reports tomorrow. Before the end of August, the Federal Reserve will hold the Jackson Hole Summit, where previous Federal Reserve chairs have sometimes announced or proposed significant policy changes.