After the CPI data appeared, the market trend should be within everyone's expectations. After the CPI data appeared this time, what is the most important thing? For most friends, the broad CPI is inflation, and for inflation, whether it is within expectations is very important. Today's broad CPI not only exceeded last month, but also exceeded expectations. What is the psychological expectation?
That is, the Federal Reserve will not rush to cut interest rates. This matter has actually been said many times. For the market, it is good to be able to cut interest rates three times in 2024. Before, it was expected to cut interest rates twice.
But is this a terrible negative? Not necessarily. The core CPI, which is the core inflation (core PCE) that the Federal Reserve is most concerned about, is higher than expected, but it does not exceed the value of last month. In other words, although it is not very good, it is not very bad. The impact of this data on the market is actually limited.
If there is no rate cut in May, there should be no need to gamble now, unless the unemployment rate in April jumps directly to more than 4.5%, which is still too unlikely. Otherwise, the probability of the Fed moving interest rates in May is not high. Some friends are worried about whether there will be a rate hike, which is a bit too much to worry about. At least the current inflation is not enough for the Fed to break the interest rate.
The previous ones are all nonsense, and I have said it dozens of times. Looking back at the data of BTC and ETH, although the price has fallen now, this is a reaction to market sentiment, which is actually a short-term effect. My personal opinion is still optimistic about the subsequent market!
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