The latest American basic consumer price index (CPI), which is an inflation measure, is 3.1 % less than expected, overcoming 3.2 % expectations, with a 0.1 % decrease in inflation numbers.
According to Matt MENA, the encryption research strategy in 21shares, refrigeration inflation data adds to the possibility of a federal reserve reduction from interest rates this year, pumps the liquidity that affects the need in the markets and sends asset prices to risk. Mina added:
“The price reduction expectations rose in response-the markets now increased a chance of 31.4 % in May, an increase of 3X last month, while the expectations of three discounts by the end of the year have jumped more than 5X to 32.5 %, and four discounts rose from 1 % to only 21 %.”
Despite the inflation numbers better than expected, the Bitcoin price (BTC) decreased from more than $ 84,000 in The Daily Open to sit around $ 83,000, as traders struggle with the American war, Donald Trump, and the uncertainty in the macroeconomic economy.
The majority of market participants believe that the Federal Reserve will reduce interest rates by June 2025. Source: CME collection
Related to: Trump Trade has ended in Bitcoin – Traders have turned hope for price discounts, and expand global liquidity
Is President Trump break the market to impose price cuts?
On several occasions, the head of the Federal Reserve, Jerome Powell, said that the central bank is not accepted to reduce interest rates – an opinion repeated by the ruler of the Federal Reserve, Christopher Wald.
During February 17 letter At the University of New South Wales at Syndyy, Australia, Waller said that the bank should stop discounts in interest rates until inflation decreases.
These comments were worried about market analysts, who say that the lack of price cuts may lead to low asset prices.
On March 10, market analyst and investor Anthony Box forecast President Trump was intentionally disrupting the financial markets to compel the Federal Reserve for low interest rates.
The United States government has about $ 9.2 trillion of debt that will ripen in 2025 unless it is re -funded. source: Copsy message
According to Copsy, the United States government needs a re -financing of about $ 9.2 trillion of debt before it reached maturity in 2025.
Failure to re -financing this debt at lower interest rates will increase national debt, which currently exceeds 36 trillion dollars, and causes interest payments on the balloon.
Because of these reasons, President Trump made reduce interest rates from a top priority for his administration-even in the short term of asset and business markets.
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