April CPI Hits 3.8%, Cementing Fed Hold at 350-375bps

7 articles · Updated · CoinDesk · May 12

U.S. consumer prices rose 0.6% in April and 3.8% from a year earlier, both above forecasts and sharply reducing expectations for any near-term Federal Reserve rate cut.
Core inflation also ran hot, up 0.4% on the month and 2.8% year over year, reinforcing market bets that rates will stay at 350-375bps at the June 17 meeting and likely through year-end.
Markets reacted quickly: bitcoin slipped about 1.2% to around $80,600, U.S. stock-index futures fell, and the 10-year Treasury yield climbed to 4.44%.
WTI crude added 3% to $101, adding another inflation risk as investors weigh whether sticky price pressures will keep financial conditions tight for longer.

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