BREAKING: US inflation drops to 1.72%
Fresh data shows inflation cooling more than expected, and that matters.
Yesterday’s CPI surprised to the upside, but the broader trend is clear. Inflation pressure is easing while the job market still looks fragile. That combination changes the conversation around monetary policy.
For markets, this is a big deal. Lower inflation means less pressure on the Fed to stay restrictive. It also gives policymakers more room to justify rate cuts later this year. When rates are expected to come down, risk appetite usually goes up.
Historically, this kind of setup favors risk assets. Bitcoin and altcoins tend to perform well when liquidity expectations improve and fear around aggressive tightening fades. A softer inflation number often acts like fuel for a risk-on environment.
The key question now is timing. Is the market already pricing in the next Fed move, or are traders waiting for more confirmation from jobs data and future CPI prints?
What’s your take? Are you bullish from here, or staying cautious until the signal is clearer?
