web3: united states inflation is below expectations in june and interest-rate bets are down in july wen

In the United States, when inflation data were lower than market expectations in June, traders quickly lowered their bets on the July interest rate hikes of the Federal Reserve. The expected fall in interest rates also led to a strong risk asset, a synchronized rebound in the encrypted market, and a break-up of $65,000 in bitcoin and $1920 in the Taifeng station.

July interest rate bets fall back.

In the United States, the consumer price index (CPI) increased by 3.5 per cent in June, below the market expectations of 3.8 per cent. The removal of the core CPI for food and energy prices increased by 2.6 per cent over the same period, also below the anticipated 2.8 per cent.

Before the data were released, the market was once concerned that the Fed might continue to increase interest at its July meeting. The CME Fedwatch tool shows that the probability of an increase in interest on 25 basis points has previously risen to about 46.5 per cent. However, with the release of inflation data, this probability fell rapidly to less than 17 per cent.

It's expected to cool down in September.

Despite the expected fall in the July hike, the market did not shift to bets for a rapid drop. According to the latest pricing of CME Fedwatch, traders have largely ruled out the possibility of a reduction in July.

At the same time, the probability of a reduction in interest rates in September was close to 76 per cent before the data were released, reaching 49.9 per cent. The article mentions that the current pricing still shows that the market expects the Fed to increase interest rates again later this year, with the probability of a rate increase of about 59 per cent in October and 73.4 per cent in December.

The encryption market rebounded.

The slowdown in inflation usually alleviates market concerns about continued tightening of monetary policy, which underpins risky assets such as encrypted assets. As a result of the data, bitcoin rose to about $65,259 and to $120 in the Inn.

Federal Reserve Board member Christopher Waller recently indicated that if inflation were to rise again, it would still be possible to continue to raise interest rates. Kevin Hassett, Director of the National Economic Commission of the United States, stated after the data had been released that there was no reason to continue to increase interest rates when inflation was below expectations.