Inflation in the U.S. has increased to 2.4%, surpassing analysts' expectations. How will this affect cryptocurrencies and the Federal Reserve's future decisions?
What the Inflation Report Reveals
According to the latest report from the U.S. Bureau of Labor Statistics, the inflation rate increased to 2.4%, exceeding analysts' expectations. The Consumer Price Index (CPI) recorded a 0.2% increase in September, while economists predicted a 0.1% growth.
Impact on Cryptocurrency Market
Bitcoin is trading at $60,533 on the Bitstamp exchange, despite the rise in inflation. Over the past 24 hours, the cryptocurrency has dropped by almost 3%, indicating limited influence of the report on its market actions.
Federal Reserve's Action Perspectives
Experts predict that the U.S. Federal Reserve may delay the next rate cut in November due to the unexpected rise in inflation. Skyler Weinand of Regan Capital thinks the Fed will hold off on further rate cuts for now. Meanwhile, Jason Furman, a professor at Harvard University, noted that the inflation risk scenario is 'less bad than it was,' although the Fed still has work to do.
The rise of U.S. inflation to 2.4% has limited impact on the cryptocurrency market but could potentially delay the Federal Reserve's plans to cut rates. Experts continue to expect rate cuts despite the slight uptick in inflation.