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#CPI&JoblessClaimsWatch Fed Still Open to Cutting Interest Rates 🏦

Even though there’s been a lot of tension with new trade tariffs and some ups and downs in the markets, the U.S. Federal Reserve says it might still lower interest rates later this year, but only if inflation keeps going down and the economy stays steady.

In March, prices in the U.S. actually dropped a bit for the first time in years. CPI over the past year slowed to 2.4%, which is the lowest it’s been since the pandemic. Additionally, the Producer Price Index (PPI), which measures wholesale prices, fell by 0.4% in March. That's the first drop since October 2023, driven by significant declines in gasoline and egg prices. This suggests that inflation pressures are easing not just for consumers but also for businesses ⚖️

But there’s a catch. Due to new tariffs, some Fed officials are being careful. Austan Goolsbee from the Chicago Fed says they’re taking a “wait and see” approach, especially because there’s a risk of stagflation: where the economy slows down, but prices keep rising.

Another Fed member, Chris Waller, also thinks rate cuts are still possible. But he says it depends on how inflation behaves. If the new tariffs don’t push prices up too much, then they won’t change his opinion on interest rates 💡

For now, the Fed is trying to balance two big goals: keeping prices stable and helping the economy grow. They’ll keep a close eye on what’s happening and make decisions based on how things go.

So, based on their statements, it's clear that nothing has been decided yet. Therefore, everyone interested should keep an eye on the development of the trade war and inflation, as interest rates directly impact the well-being of the crypto market. follow us so u can stay informed.