#CryptoCPIWatch

Inflation Eases – CPI Falls to 2.4%, Below Estimates

March 2025 CPI came in at 2.4% (vs. 2.5% expected), and Core CPI at 2.8% (vs. 3.0%)—marking the second monthly drop. However, with 125% tariffs on Chinese goods, inflation may heat up soon. Investors, stay alert! 👀

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🔍 CPI Details at a Glance:

Monthly CPI slipped 0.1% (vs. +0.2% in February)

Energy prices dropped 2.4% (gasoline -6.3%)

Food costs rose 0.4%

Core CPI up 0.1%, with airfares and used cars seeing price drops

Core inflation at 2.8% – slowest pace since March 2021

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📉 Dollar Drops to 2025 Low Ahead of CPI Report

The USD is down ~6% year-to-date, benefiting unhedged global equities. Today’s CPI release at 8:30 AM EST could shape the Fed’s next move!

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🚀 Markets Rally After Trump Delays Tariffs (China Hit with 125%)

On April 9, Trump delayed most tariffs for 90 days (maintained 10% baseline), but hiked tariffs on Chinese imports to 125%. The result? S&P 500 surged 5.6%—the biggest one-day gain since WWII! Next catalyst? Today's CPI report.

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⚠️ Powell’s Caution: Tariffs May Fuel Inflation, Slow Growth

Fed Chair Jerome Powell flagged concerns that tariffs are “larger than expected” and could:

Drive inflation higher

Stall economic growth

The Fed remains cautious—rate cuts aren’t on the table just yet.