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US Inflation Drops Below Expectations – Will the Fed Cut Interest Rates?
In a surprising turn of events, the United States inflation rate has dropped below expectations. The recent development has sparked heated discussions about whether or not the Federal Reserve will cut interest rates. The question on everyone’s mind is: what does this mean for the crypto market and our investments?
As reported by Coinpedia, in February, the US Core Inflation rate declined from 3.3% to 3.1%, while the inflation rate dropped from 3% to 2.8%. This unexpected drop has left many wondering if the Fed will take action.
The recent decline in inflation rates is a significant development that could have far-reaching implications for the economy and the crypto market. In July 2024, the core inflation slipped from 3.3% to 3.2%, and the inflation rate decreased from 3% to 2.9%. This consistent drop in inflation rates led to interest rate cuts post-July.
In a surprising move, the Fed cut interest rates three times last year, with reductions of 0.75%, 0.5%, and 0.25%. As a result, interest rates dropped from 5.5% to 4.5%.
The possibility of another rate cut is now a topic of intense debate. According to recent reports, the likelihood of a rate cut in May has increased significantly, growing from 10% to 31.4%. Similarly, the chances of a year-end cut have risen from 6.5% to 32.5%, while four rate cuts this year have surged from 1% to 21%.
In response to these developments, Bitcoin’s value has dropped by an astonishing 15.3% in the last 30 days and by 9.3% over the past seven days.
Source: https://coinpedia.org/news/us-inflation-drops-below-expectations-will-the-fed-cut-interest-rates/
