Some time America released news on December 13 2022 Consumer Price Index (CPI). The released CPI had given positive hope to crypto market and stock market investors. CPI was previously (Previous) 7.7% with an estimate (Forecast) to fall 7.3%, but after the news was released (Actual) exceeded expectations to 7.1%
Notes
CPI : an index published by the United States Bureau of Labor Statistics every month. The CPI value has an important role in determining the inflation rate. an index published by the United States Bureau of Labor Statistics each month. The CPI value has an important role in determining the inflation rate.
Falling energy prices, weak real estate on consumer prices have cheered investors on the inflation outlook.
After raising interest rates by half a percentage point expected on Wednesday, Fed Chair Jerome Powell and his colleagues drafted economic and rate forecasts based on a protracted, painful battle with inflation completely at odds with the market.
On December 15, 2022. Funds Rate to increase inflation has increased by 50 Bps. This increase was lower than the increase in previous months, namely 75 Bps. Even though the increase in inflation decreased, inflation still occurred which caused the price of Bitcoin and gold.
The increase in Funds Rate was accompanied by a decrease in Unemployment Claims (a government program that provides payments in limited amounts to unintentionally unemployed qualified workers). This decrease caused the USD currency to strengthen.
In the previous September, when the Fed last released its forecast of the Funds Rate peaking at 4.6% next year, however, seeing the results of the Funds Rate last November, which was just released, had reached 4.5%. That number makes no difference at all to the Fed. In releasing data this week, the central bank expects to raise interest rates eventually to 5.1% by the end of 2023, and will lower them to just 4.1% by the end of 2024.
