US Inflation Report Impacts Markets: Expectations Remain High for Rate Cut

After a delayed release, the U.S. inflation report provides insights into the financial landscape. While expectations point toward a 25 basis point interest rate cut by the Federal Reserve next Wednesday, recent economic indicators offer crucial context. Oil prices saw a significant increase due to sanctions on Russia, further influencing inflation calculations. The outcome of negotiations between the US and China regarding trade is anticipated on November 1st, which could potentially impact product prices. With the possibility of tariffs increasing as a consequence, inflationary pressure may intensify. Further analysis of PCE figures reveals details about the impact of tariffs on inflation, including: Core CPI Monthly Announcement: 0.2% (Expectation and Previous: 0.3%), Core CPI Announced: 3% (Expectation and Previous: 3.1%), CPI Monthly Announcement: 0.3% (Expectation and Previous: 0.4%), and CPI Announced: 3% (Expectation: 3.1%, Previous: 2.9%). The report provided some relief for the cryptocurrency market, as lower-than-expected inflation figures are expected to favor cryptocurrencies like Bitcoin (BTC) which is currently advancing toward $112,000.