EASY EXPLANATION OF THE NEWLY RELEASED CPI REPORT

CPI (2.7%) is lower than forecast (2.8%)

Meaning & Impact:

→ Inflation lower than expected → pushes the Fed toward cutting interest rates

→ Strong capital flow into risk assets (stocks, crypto, etc.), market excitement rises

• USD exchange rate ↓

• Bond yields ↑

• Stocks ↑

• Crypto ↑ sharply (total market cap only $4T – very small compared to other asset classes)

In short: Weak job market + moderate inflation → pressure on the Fed to cut rates in September. Stocks & crypto are growing → Altseason is approaching.

#CPI #FED