CPI data may influence Fed’s timeline for rate cuts amid fading first-half expectations.
Strong jobs report reduces chances of rate cuts at June and July FOMC meetings.
Trade policy uncertainty adds complexity to Fed’s interest rate decisions in 2025.
Crypto markets are on high alert for the May U.S. Consumer Price Index (CPI) report on June 11, a high-stakes data release that will test the market’s waning hopes for a near-term Federal Reserve rate cut. The inflation figures arrive just days after stronger-than-expected jobs data significantly dampened expectations for monetary easing in the first half of the year.
This CPI print is now a critical pivot point that could either bolster the Fed’s argument for keeping rates “higher for longer” or provide the first concrete evidence that inflation is cooling enough to justify a cut later in the year.
Strong Jobs Report Tempers Rate Cut Expectations
According to MarketWatch, analysts expect the May CPI to register a 0.2% month-over-month increase and a 2.5% year-over-year increase. The Core CPI, which excludes volatile food and energy prices, is projected to come in at 0.3% MoM and 2.9% YoY. If the resul…
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