JUST IN: Inflation Data Released – Here is What You Should Know

One of the most important data points that will shape future Federal Reserve interest rate policy was just released - the CPI.

Overall inflation in June fell to 3% year over year, lower than the expectations (expectations were for 3.1%) – a slowdown from the 3.3% annual pace set in May, with no MoM changes.

The core CPI inflation, which excludes volatile food and energy prices, is seen at 3.3% year over year, while the monthly core CPI fell by 0.1%.

The applications for unemployment benefits were announced at 222,000 – down from the previous 238,000.

READ MORE:

Expert Forecasts Recession in the US Amidst Market Optimism and S&P 500 Surge

Federal Reserve Chairman Jerome Powell presented the Semi-Annual Monetary Policy Report and testified before US Congress and the House Committee on Financial Services. Powell emphasized that they are not considering a policy rate cut until they are confident inflation is heading sustainably towards 2%.

Regarding the job market, Powell acknowledged that recent data indicate a significant cooling in employment conditions.

Despite Powell’s remarks, there was little impact on market expectations for a Fed rate cut in September. According to the CME FedWatch Tool, the probability of the Fed maintaining the policy rate in September remains around 26%, virtually unchanged from before Powell’s statements.

June’s CPI data reveals a good probability for September rate cuts, which could potentially boost market confidence.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.