U.S. February CPI matches forecasts, reinforcing expectations for no near-term rate cuts

The price of bitcoin was trading at $69,500 following the news, down 1.2% over the past 24 hours.

Make us preferred on Google

What to know:

• February CPI rose 0.3% for the month and 2.4% year-over-year, in line with market forecasts.
• Markets continue to expect no Fed rate cuts at the central bank's upcoming March and April meetings.
• Bitcoin was trading at $69,500 following the news, down 1.2% over the past 24 hours.

U.S. inflation data met expectations on Wednesday, reinforcing anticipation that the Federal Reserve will keep interest rates steady not just at its March 18 meeting, but likely at the bank's April meeting as well.

The Consumer Price Index (CPI) rose 0.3% in February, according to a report from the Bureau of Labor Statistics. Economist forecasts had been for a rise of 0.3% and January's increase was 0.2%.

On a year-over-year basis, CPI was higher by 2.4% against expectations of 2.4% and January's 2.4%.

Core CPI, which excludes food and energy costs, rose 0.2% in February versus forecasts of 0.2% and January's 0.3%. Year-over-year core CPI was higher by 2.5% versus forecasts of 2.5% and January's 2.5%.

Under modest pressure for the morning, bitcoin BTC$69,358.70 was trading at $69,500 in the minutes following the report, lower by 1.2% over the past 24 hours.

U.S. stock index futures were slightly lower across the board and the 10-year Treasury yield ticked up to 4.18%. The main actor in markets this week, WTI crude oil was higher by 4.2% to $87 per barrel.

Ahead of the data, markets were pricing in a 99% probability that the Federal Reserve would leave interest rates unchanged at its March meeting next week, according to the CME FedWatch tool. For the April meeting, rate cut odds were at just 11% versus 21% one month ago.

February's inflation numbers, of course, are somewhat old news given the events that have transpired since, namely the war in Iran and spiking oil prices. How much this plays into the Fed's thinking on interest rates should become more evident following next week's policy meeting.

More For You

CoinDesk Research looks into how Pudgy Penguins disrupts traditional toys market via a phygital model. With 2M+ units sold, they scale via global partnerships and events.

What to know:

• Disrupting a Stagnant Market: Pudgy Penguins is utilizing a "Negative CAC" model to challenge the traditional $31.7B licensed toy industry by treating physical merchandise as a profitable user acquisition tool rather than just a final product.

More For You

Bitcoin drops on Iran war uncertainty, AI tokens jump

BTC traded near $69,500 after failing to hold $71,000 as the Iran war kept markets cautious. AI tokens including ICP, FET outperformed on strong retail demand.

What to know:

• Bitcoin pulled back to $69,500 during European hours after failing to penetrate $71,750 as geopolitical tensions drove cautious trading.
• Altcoins mostly lagged, with zcash (ZEC) losing 4.5% and aave (AAVE) off 2.1% since midnight UTC, while DeFi tokens curve (CRV) and jupiter (JUP) each dropped about 6.5%.
• AI tokens bucked the trend, led by internet computer (ICP) jumping over 8% after an Upbit listing. FET rose 6% amid bullish commentary from Nvidia CEO Jensen Huang.

Binance sues Wall Street Journal as newspaper says U.S. Dept. of Justice is investigating Iran transactions

31 minutes ago

Binance, PayPal and Ripple join Mastercard’s massive new push into blockchain payments

1 hour ago

Bitcoin stuck under $70,000 as investors play it safe before U.S. inflation report

1 hour ago

Bitcoin drops on Iran war uncertainty, AI tokens jump

2 hours ago

Oracle jumps 11% premarket as AI demand challenges 'SaaS apocalypse' fears

2 hours ago

Coinbase-backed AI payments protocol wants to fix micropayment but demand is just not there yet

4 hours ago

Bitcoin traders bet on a rally above $80,000

7 hours ago

Next week could spice things up for bitcoin as seven central banks face an inflation test

5 hours ago

Elon Musk announces X Money launch date for April

8 hours ago

XRP Ledger transactions jump to 2.7M as price stays rangebound

7 hours ago

Ripple to acquire Australian financial services license as APAC payments volume doubles

7 hours ago

Ethereum's on fire with record activity, but ether price and blockchain fees lag

8 hours ago

In this article

BTCBTC$69,358.70◢1.65%