The upcoming CPI report is expected to show a decline in inflation under President Donald Trump, which could increase the chances of an interest-rate cut and lift investor confidence in risk assets. Slower inflation makes riskier investments more attractive. The S&P 500 and bitcoin have both experienced significant losses in recent weeks. The Trump administration aims to lower Treasury yields to bring down the federal funds rate, and this strategy appears to be working so far. The Truflation Index is at its lowest level since September 2020, indicating a decrease in inflation expectations. Chair Jerome Powell is expected to hold the federal funds rate steady at the upcoming FOMC meeting. Investors are eagerly anticipating the inflation report, as it could influence the Federal Reserve's decisions regarding interest rates and further impact risk assets.



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