In January, the US inflation index reached 3.1%. This figure surpassed the forecast of 2.9% but was an improvement over the previous month’s 3.4%.
Experts noted that a slower pace towards the 2% target could influence the Fed’s policy on the key interest rate.
BREAKING: Prediction markets are now pricing-in just 4 rate cuts in 2024 after January CPI inflation hits 3.1%.
This is a huge slide in expectations as markets were pricing-in 6 rate cuts just over a month ago, according to @Kalshi.
The most recent Fed guidance was for 3… pic.twitter.com/3TR8Vs1eIz
— The Kobeissi Letter (@KobeissiLetter) February 13, 2024
In prediction markets, expectations have reduced to four rate cuts in 2024, down from six just a month ago.
The likelihood of the regulator deciding to cut rates in March is estimated at no more than 10%.
Bitcoin reacted with a decline following the release of the US Bureau of Labor Statistics’ inflation data.
At the time of writing, the cryptocurrency had fallen by approximately 1.8% following the press release, failing to maintain the $49,000 level.
Earlier, former BitMEX CEO Arthur Hayes predicted a drop in Bitcoin to $35,000 due to various factors, including Fed policy and “excessive” inflation.