$BTC The interest rate cut is on fire! U.S. core CPI annual rate falls to lowest level in nearly three years

Before the market opened on Wednesday local time, the U.S. Department of Labor disclosed the Consumer Price Index in April. The nominal CPI annual rate was 3.4%, in line with expectations; the CPI monthly rate increased by 0.3%, slightly lower than the expectation of 0.4%; the more critical core CPI annual rate fell further To 3.6%, in line with expectations, it fell to the lowest point since April 2021.

Since the CPI data in the first three months of this year exceeded expectations, although the inflation data in April still remained above 3%, the mere lack of shock was enough to make US stock investors and the US dollar suffer from a strong dollar for a long time. International investors celebrated collectively.

As of press time, the three major U.S. stock index futures all rose by about 0.5% after the data was released, and are expected to jointly hit record highs.

The U.S. dollar index plunged simultaneously, with the U.S. dollar/yen once falling nearly 1% during the day. Spot gold rose by nearly $20 in the short term, once hitting $2,380 per ounce. In response to increased expectations of a rate cut by the Federal Reserve, the 10-year U.S. Treasury yield continued to fall back to where it was in early April.

Based on the confidence brought by CPI data, the swap market's predicted probability of the Federal Reserve's first interest rate cut in September has also risen above 70%, and the predicted probability of two interest rate cuts before the end of the year has exceeded 50%. $ETH $BOME