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WHAT IS FOMC, PPI , CPI AND WHAT TO EXPECT !
1. FOMC (Federal Open Market Committee)
* 🔸What it is: The Fed's policy-setting group. They decide interest rates and energy for economic stability.
* 🔸Recent Context (2025): In July, the Fed held rates at 4.25–4.50%, adopting a cautious wait-and-see approach amid inflation and tariff uncertainties. Rate cuts now expected later in the year.
* 🔸Market Impact:
* Higher rates → stronger USD/USDT, weaker risk assets
* Hints at rate cuts → softer USD/USDT, stronger crypto, equities
* 🔸what to expect in AUGUST: Inflation is likely to stay above 3%, especially in prices for goods, while services inflation may ease slightly.
* 🔺Market confidence in rate cuts is fading; inflation remains too sticky.
2. CPI (Consumer Price Index)
* 🔸What it is: Measures monthly consumer price changes, showing inflation pressure from buyers’ perspective.
* 🔸July 2025 Update:
* Overall CPI rose ~2.8% YoY (from 2.7% in June)
* Core CPI (excludes food & energy) climbed ~3.0–3.1% YoY
* 🔸Market Impact:
* Rising CPI → markets nervous about inflation, USD strengthens
* Clearer outlook can boost confidence; muted CPI may ease Fed’s rate policy
* 🔸what to expect in AUGUST: Core CPI (excludes food & energy) is expected to have ticked up to ~3.1% YoY, also a multi-month high.
3. PPI (Producer Price Index)
* 🔸What it is: Tracks price changes from the seller’s viewpoint (wholesale level). Can foreshadow CPI trends.
* 🔸Latest (June/July):
* June PPI was flat, below expectations; core goods prices up mildly
* July core PPI YoY at 2.6%, the slowest since July 2024 — showing easing inflation at producer level
* 🔸Market Impact:
* Slower PPI → lower input cost pressures, easing Fed concerns
* Generally bearish for USD, bullish for risk assets
🔸 what to expect: recent PPI trends show slowing wholesale inflation, implying a lower risk of cost-push pressure.
If this easing continues, it would likely bring downward pressure on future CPI movements.
4. NFP (Non-Farm Payrolls)
* 🔸What it is: Monthly count of non-farm jobs added — key gauge of labor market and economic health.
* 🔸Latest (July 2025):
* Forecasts centered around +100,000 jobs added
* 🔸Market Impact:
* Strong NFP → USD rallies, risk assets moderate
* Weak NFP → loosens Fed’s grip, USD weakens, risk assets (stocks, crypto) rally
In ACTUAL;
🔺Inflation (CPI & PPI) remains a key driver — higher numbers bolster USD, while easing figures boost crypto and equities.
🔺Labor data (NFP) influences the Fed’s decisions — strong jobs support USD; weakness softens it and supports riskier assets.
🔺Fed policy tone (via FOMC) remains central — a cut-friendly outlook generally weakens USD and boosts broader markets.
#FOMC #CPIWatch #DeFiGetsGraded
#NFP #USD #USDT #CryptoMarkets #Macroeconomics #InterestRates #Inflation #JobsReport
#MarketUpdate #CryptoNews #Forex #TradingInsights #RiskOn #EconomicData
* 🔸What it is: The Fed's policy-setting group. They decide interest rates and energy for economic stability.
* 🔸Recent Context (2025): In July, the Fed held rates at 4.25–4.50%, adopting a cautious wait-and-see approach amid inflation and tariff uncertainties. Rate cuts now expected later in the year.
* 🔸Market Impact:
* Higher rates → stronger USD/USDT, weaker risk assets
* Hints at rate cuts → softer USD/USDT, stronger crypto, equities
* 🔸what to expect in AUGUST: Inflation is likely to stay above 3%, especially in prices for goods, while services inflation may ease slightly.
* 🔺Market confidence in rate cuts is fading; inflation remains too sticky.
2. CPI (Consumer Price Index)
* 🔸What it is: Measures monthly consumer price changes, showing inflation pressure from buyers’ perspective.
* 🔸July 2025 Update:
* Overall CPI rose ~2.8% YoY (from 2.7% in June)
* Core CPI (excludes food & energy) climbed ~3.0–3.1% YoY
* 🔸Market Impact:
* Rising CPI → markets nervous about inflation, USD strengthens
* Clearer outlook can boost confidence; muted CPI may ease Fed’s rate policy
* 🔸what to expect in AUGUST: Core CPI (excludes food & energy) is expected to have ticked up to ~3.1% YoY, also a multi-month high.
3. PPI (Producer Price Index)
* 🔸What it is: Tracks price changes from the seller’s viewpoint (wholesale level). Can foreshadow CPI trends.
* 🔸Latest (June/July):
* June PPI was flat, below expectations; core goods prices up mildly
* July core PPI YoY at 2.6%, the slowest since July 2024 — showing easing inflation at producer level
* 🔸Market Impact:
* Slower PPI → lower input cost pressures, easing Fed concerns
* Generally bearish for USD, bullish for risk assets
🔸 what to expect: recent PPI trends show slowing wholesale inflation, implying a lower risk of cost-push pressure.
If this easing continues, it would likely bring downward pressure on future CPI movements.
4. NFP (Non-Farm Payrolls)
* 🔸What it is: Monthly count of non-farm jobs added — key gauge of labor market and economic health.
* 🔸Latest (July 2025):
* Forecasts centered around +100,000 jobs added
* 🔸Market Impact:
* Strong NFP → USD rallies, risk assets moderate
* Weak NFP → loosens Fed’s grip, USD weakens, risk assets (stocks, crypto) rally
In ACTUAL;
🔺Inflation (CPI & PPI) remains a key driver — higher numbers bolster USD, while easing figures boost crypto and equities.
🔺Labor data (NFP) influences the Fed’s decisions — strong jobs support USD; weakness softens it and supports riskier assets.
🔺Fed policy tone (via FOMC) remains central — a cut-friendly outlook generally weakens USD and boosts broader markets.
#FOMC #CPIWatch #DeFiGetsGraded
#NFP #USD #USDT #CryptoMarkets #Macroeconomics #InterestRates #Inflation #JobsReport
#MarketUpdate #CryptoNews #Forex #TradingInsights #RiskOn #EconomicData
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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