USA announced the expected inflation data for May.
The US Department of Labor announced May consumer price index (CPI) data. Accordingly, the CPI increased by 8.6%, above the expectations, and set a new peak in the last 40 years. The data, where the expectations were at 8.3%, also increased by 1% on a monthly basis.
What Does It Mean?
The higher-than-expected data increased the expectation that the Fed will take aggressive steps in tightening and interest rate hikes. As it is known, the Fed plans to raise interest rates by half a basis point in the coming months.
In addition, the increase in gasoline prices and geopolitical factors indicate that inflation will remain high in the coming months and the Fed will have to curb the economy for a longer period of time. For this reason, while Bitcoin and stock futures are experiencing some decline; Dollar and treasury yields rose.
Bitcoin is holding $29,000 at the time of publication and is trading at $29,700.
