US CPI Report: Inflation Cooling or Persistent Pressure? What It Means for Markets and Crypto
The latest U.S. Consumer Price Index (CPI) report has reignited the debate over whether inflation is genuinely cooling or if persistent price pressures remain entrenched. While headline inflation may show signs of moderation, core inflation—excluding volatile food and energy prices—remains sticky, indicating ongoing challenges for the Federal Reserve. This ambiguity affects market sentiment, as investors weigh the likelihood of future interest rate cuts against the risk of prolonged tight monetary policy. For crypto markets, which tend to thrive in environments of lower interest rates and increased liquidity, persistent inflation could delay a broader rally, while signs of easing could trigger renewed bullish momentum.
