CandleFocus

Treasury yields and CPI data fuel market jitters before Fed’s next move

Author: Content Editor
The upcoming Federal Reserve rate decision is highly anticipated as markets look for clarity on interest rate policy. Market forecasts indicate a 97.3% chance that rates will remain steady, with only a slim 2.7% chance of a rate cut. The Fed's decision will be influenced by economic indicators such as inflation, strong job data, and rising Treasury yields. Inflation remains a concern, with recent data showing a rise to the highest level since July 2024. The job market continues to perform well, which raises doubts about the need for further easing. Long-term Treasury yields are also climbing, which could coincide with stock market corrections. The dollar is strengthening, which may already be impacting financial conditions. Bitcoin's recent price dip suggests a broader risk-off sentiment in markets. If the CPI report shows sticky inflation or resilient growth, the Fed may hold steady or signal a longer pause before further easing. These outcomes could dampen Bitcoin's recovery prospects as the crypto market relies on expectations of easy monetary policy. The crypto market has shown a high correlation with risk sentiment on Wall Street.

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