The U.S. Bureau of Labor Statistics released the February Consumer Price Index (CPI) data, showing a 2.8% year-over-year increase, below market expectations.
New CPI Data and Its Implications
The latest data showed a 2.8% year-over-year increase, below the market's expectation of 2.9% and the previous year's 3%. This is the lowest level since last November. The month-over-month increase was 0.2%, also below expectations. The core CPI rose 3.1% year-over-year, missing the expected 3.2%.
Future of Fed Interest Rates
Despite lower inflation, uncertainties remain due to evolving trade policies. The Fed will announce its next interest rate decision on March 19, and rates are expected to remain unchanged. There is potential for rate cuts in June and September.
Stock Market and Crypto Reactions
After the CPI data release, major U.S. indices mostly closed higher. Tesla, Nvidia, and TSMC stocks surged. Bitcoin briefly broke above 84K, while Ethereum hovers around $1,900.
The lower-than-expected CPI has provided a positive signal to the market, though uncertainties regarding the Fed's future policy and trade relations remain.
