#CryptoCPIWatch

📉 U.S. Jobless Claims See Slight Increase; Labor Market Holds Steady

For the week ending April 5, jobless claims increased by 4,000 to 223,000, aligning with projections. Meanwhile, continuing claims dropped by 43,000 to 1.85 million as of March 29, reflecting a solid labor market. Despite small fluctuations, employment remains robust.

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💸 U.S. Inflation Eases Further – CPI Drops to 2.4%, Below Expectations

The March 2025 CPI came in at 2.4%, slightly below the 2.5% forecast, and Core CPI at 2.8%, lower than the 3.0% estimate. This marks the second consecutive monthly decrease. However, with 125% tariffs on Chinese goods, inflationary pressures may intensify soon. Stay vigilant, investors!

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🔍 CPI Breakdown:

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

• Energy prices decreased 2.4% (gasoline -6.3%)

• Food costs rose 0.4%

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

• Core inflation at 2.8% – the slowest pace since March 2021

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📉 Dollar Hits 2025 Low Ahead of Key CPI Report

The USD has dropped around 6% year-to-date, benefiting global equities that are unhedged. The release of today’s CPI report at 8:30 AM EST could significantly influence the Fed’s next decision!

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🚀 Markets Surge After Trump Delays Tariffs (Chinese Goods Hit with 125%)

On April 9, President Trump postponed most tariffs for 90 days (maintaining a 10% baseline) but raised tariffs on Chinese imports to 125%. The S&P 500 surged 5.6%, marking the biggest one-day gain since WWII! The next key event? Today’s CPI release.

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⚠️ Powell Cautions on Potential Inflation Risks from Tariffs

Federal Reserve Chair Jerome Powell raised concerns that the increased tariffs could:

• Drive inflation upward

• Potentially hinder economic growth

The Fed remains cautious, with no imminent rate cuts on the horizon.