The latest US core consumer price index (CPI) print, a scale of inflation, came to lower than expected at 3.1%, beat 3.2%expectations, with a corresponding 0.1%collapse in headline inflation numbers.
According to Matt Mena, the strategist of the crypto research at 21shares, cooling the cooling data increases with the possibility that the federal reserve will cut interest rates this year, injection the more needed liquidity in markets and shipping risk prices higher. Mena added:
“Rate cut expectations have emerged in response-the markets today have been priceing a 31.4% chance of a cut in May, up to 3x from last month, while expectations for three cuts by the end of the year have jumped more than 5x to 32.5%, and four cuts are skyrocks from just 1% to 21%.”
Despite the better than the expected inflation numbers, the price of bitcoin (Btc) declined from more than $ 84,000 In the sun -opening tomorrow to sit now around $ 83,000 while entrepreneurs are with US president Donald Trump’s trade war and macroeconomic uncertainty.
Most market participants believe that the Federal Reserve will cut off interest rates by June 2025. Source: CME GROUP
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Did President Trump crash markets to force rate cuts?
Federal Reserve Chairman Jerome Powell said on many occasions that the Central Bank was not in a hurry to cut interest rates – a perspective pronounced by Federal Reserve Governor Christopher Waller.
During a Feb. 17 Speaking At the University of New South Wales in Syndey, Australia, Waller said the bank should be I -Pause the reduction in interest rate Until the inflation goes down.
These comments have been met by a remembrance from market analysts, stating that a lack of reduction in rate may Trigger a bear market and send plummeting asset prices.
On March 10, the market analyst and investor Anthony Pompliano haka -haka The President Trump is Intentionally crashing financial markets to force the federal reserve less interest rates.
The US government has approximately $ 9.2 trillion in debt to prioritize in 2025 unless re -enabled. Source: The Kobeissi letter
According to the Kobeissi letter, the US government had to re -refinance nearly $ 9.2 trillion in debt before it reached the age of 2025.
Failure to reefinance this debt at lower interest rates will motivate national debt, which is currently over $ 36 trillion, and cause payments of interest in wolf debt.
For these factors, President Trump has made an interest rate that cuts the top priority for his administration-even at the short-term cost of asset and business markets.
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