Honestly, the inflation rate is still high and the cost of goods and services and basic amenities are still high, yes I know I must sound like a hater right now but I am just airing my opinion which I think many people would agree with me but might not what admit that they do in public for reason best known to them but would admit it behind closed doors and still curse out the government, yes the United States Inflation has fallen for the first time since April 2022 and has fallen 0.2% below the expected 8.7% YoY, but that doesn't change the fact that these inflation numbers are still horrible, it fell from 9.1% the 40 years high it hit back in June, which was just 2 months ago to 8.5% now, it is not a bad start but it is still not a good one either.
The Federal Reserve Still Need To Up Their Game
The Federal Reserve is still far and away from resolving the issues facing the broader economy as individual sectors, mainly energy, are still wildly above the central bank’s 2% inflation goal. Fuel oil rose 75% and energy commodities and gasoline of all types rose 44%, while the entire energy sector saw a 32% increase. Piped utility gas services suffered a 30% increase. Although the slight decrease in the inflation rate shows that the Federal Reserve's (FED) tighter monetary policy can be maintained, raising the prospects of another aggressive rate hike such as the 75 basis points that we saw last month.
How It Affected The Crypto Market
The drop in the United States Inflation rate to 8.5% was supposed to be good for the crypto market and it actually was because after the Consumer price index (CPI) data was announced that the U.S. inflation has reduced it became a trigger for positive sentiment across the crypto market which led to the pump in the crypto market yesterday and it rekted a lot of Bitcoin shorters when the price of Bitcoin hit $24k and a little bit above it, also this might signify that the Fed won't have to continue with their hawkish crypto stance. And that might likely bring more bullish sentiment into the crypto space and maybe we could see more greens candles in the market in the following days or weeks ahead. But let us watch and see how everything unfolds.
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