Donald Trump's recent announcement of no tariffs on gold has created a wave of discussions within financial circles, particularly concerning expected inflation data in the US. This could significantly influence cryptocurrency markets.
What Are Experts Saying on US Inflation?
The upcoming inflation report forecasts a slight decrease in monthly headline inflation by 0.1 points, while an increase in core inflation is expected. Anticipations for inflation are notably high, and forthcoming data may impact cryptocurrency assets. Should inflation exceed expectations, it may weaken the demand for cryptocurrencies as the chances for interest rate cuts diminish.
How Do Banks View the Future?
Several banks have presented their projections regarding the forthcoming inflation data.
### Predictions from ANZ ANZ forecasts a 0.32% monthly uptick in core Consumer Price Index (CPI), noting deflationary trends in core services, excluding rent.
### ING Bank’s Perspective ING projects a 3% rise in CPI and questions if this supports a rate cut. Despite a weakening labor market, ING believes a rising CPI may not deter rate reductions. Their core inflation estimate stands at 0.4%.
Goldman Sachs economists predict a monthly increase of 33 basis points in core CPI.
CITE_NA: “Should new labor market trends confirm and unemployment rise, it’s unlikely to hold back the FOMC. If the inflation figures match our projections, focusing on labor market risks and Fed policies at the Jackson Hole symposium may help mitigate uncertainties.”
Morgan Stanley anticipates a 32 basis point increase monthly in CPI with an annual forecast of 3.04%.
With anticipated inflation figures and their potential impact on interest rates, the financial market is awaiting US inflation data, which could noticeably influence cryptocurrency movements and economic policies.
