Positive News for the Cryptocurrency Market

After the US inflation report was released, Trump and Vance called on the Federal Reserve to lower interest rates as soon as possible on social media. On June 11, Trump posted on social media, saying, "The CPI data just came out, very good numbers! The Federal Reserve should cut interest rates by a full percentage point." Trump believes that if the Federal Reserve can lower interest rates, it will significantly reduce the interest payments the US government has to make on its soon-to-mature debt. At the same time, US Vice President Vance also echoed on social media: "The President has been saying this for a while, but it is now clearer: the Federal Reserve's refusal to lower interest rates is a dereliction of duty in monetary policy." The US Consumer Price Index (CPI) for May rose 2.8% year-on-year after excluding food and energy costs, remaining at the lowest level since March 2021, and also lower than the market expectation of 2.9%. Even though the latest report was better than market expectations, both year-on-year increases are still above the Federal Reserve's 2% inflation target. The Federal Reserve may be more inclined to "hold steady" to observe the impact of tariffs on prices. The Federal Open Market Committee (FOMC) of the Federal Reserve is scheduled to announce its interest rate decision a week later, and the market currently expects little chance of an interest rate cut at that meeting. The next interest rate cut may have to wait until September.