#CryptoCPIWatch 🍒🍒

US Labor Market

- Initial jobless claims rose by 4,000 to 223,000, matching expectations.

- Continuing claims fell by 43,000 to 1.85 million, signaling labor market resilience.

US Inflation (CPI)

- March 2025 CPI fell to 2.4%, below forecasts.

- Core CPI at 2.8%, marking a second straight decline.

- New 125% tariffs on Chinese imports may push prices up soon.

Detailed CPI Breakdown

- Monthly CPI dropped 0.1%.

- Energy prices fell 2.4% (gasoline -6.3%), but food rose 0.4%.

- Core CPI (ex-food/energy) +0.1%, with declines in airfares & used cars.

Market Impact

- Dollar hit a year-to-date low before CPI report.

- Markets soared as Trump delayed tariffs (most at 10%, China hit with 125%).

- S&P 500 surged 5.6% - biggest daily jump since WWII.

Fed's Stance

- Fed Chair Powell warned that new tariffs are "larger than expected" and may push inflation higher and slow economic growth.

- The Fed will stay cautious - no rush to cut rates yet.