#CryptoRoundTableRemarks Key points:

February CPI inflation is expected to be 2.9% year-on-year, down from 3.0% in January.

Core CPI is projected at 3.2%, slightly decreasing from the previous 3.3%.

The outlook for U.S. Federal Reserve rate cuts may change based on CPI data.

Crypto, stock markets, and fluctuations of the U.S. dollar depend on inflation trends.

U.S. inflation data is expected to show a cooling, but risks remain.

The U.S. Bureau of Labor Statistics (BLS) is set to release its Consumer Price Index (CPI) report for February on Wednesday at 12:30 GMT, providing critical insight into inflation trends. Market analysts anticipate a slight decline in inflation, which could influence Federal Reserve policy, the U.S. dollar, and risk assets like cryptocurrencies.

The core CPI inflation rate is expected to be 2.9% year-on-year (YoY), down from 3.0% in January, marking the first dual decline in both core and overall inflation since July 2024. The core CPI inflation rate, which excludes food and energy, is projected to fall to 3.2% from 3.3%.

Monthly inflation projections:

Overall CPI: +0.3% monthly

Core CPI: +0.3% monthly

TD Securities analysts predict a widespread slowdown in inflation, noting that housing costs and goods prices may decrease, contributing to a relief trend.

How CPI data could affect the Federal Reserve's rate decision

The Federal Reserve has signaled caution regarding rate cuts, with Chairman Jerome Powell stating last week that economic conditions remain "solid," but inflation must cool further before making any cuts.