After the surprising 3.5% increase in US Consumer Price Index (CPI) for March was announced, causing higher-than-anticipated inflation, Wall Street and the crypto market experienced significant selling pressure. Later on, President Joe Biden shared his belief that the Federal Reserve would still reduce interest rates in 2023.
Prior to this, various financial experts forecasted that the initial interest rate reductions would occur around June of this year. Yet, following the release of recent inflation figures, the Joe Biden administration now anticipates these cuts to transpire toward the end of 2024. During a joint news conference with Japanese Prime Minister Kishida Fumio, President Biden made this statement:
“I do stand by my prediction that before the year is out, there will be a rate cut. This may delay it a month or so – I’m not sure of that. We don’t know what the Fed is going to do for certain. But look, we have dramatically reduced inflation.”
In light of the approaching US Presidential Elections in 2024, this year holds significant importance for President Biden. To enhance his chances of being re-elected, he is focusing on two key areas: reducing inflation and securing interest rate reductions.
Inflation continues to be a concern for the Biden administration, and they hope it will decrease so the Federal Reserve can consider reducing interest rates. At the State of the Union address, President Biden urged businesses to keep prices in check as well.
The cost of housing and groceries remains high despite a decrease in the price of certain household essentials, like milk and eggs, over the past year. I propose a solution to cut down on expenses by constructing and refurbishing over two million homes to increase affordable housing options. Additionally, I urge corporations, including supermarkets, to utilize their substantial profits to lessen prices for consumers.
Bitcoin (BTC) Price Recovers Above $70,000 After Initial Dip
After the Consumer Price Index inflation figures were released on April 10, Bitcoin‘s price took an immediate dip to $67,000. But it bounced back within a short timeframe and is now trading above $70,000 once more.
Investors seem unfazed by inflation worries and are instead keeping a close eye on the upcoming Bitcoin halving, which is set to occur in just 9 days. The price of Bitcoin has remained relatively stagnant in recent weeks, fluctuating between $69,000 and $71,000. According to Darren Franceschini, one of Fideum’s co-founders, the CPI numbers surpassing expectations suggest a positive future for Bitcoin.
“Due to its scarcity and proven ability to protect against inflation, Bitcoin is an attractive hedge for investors facing price increases. Furthermore, the upcoming halving event emphasizes Bitcoin’s limited supply and often generates increased attention and market buzz.”
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2024-04-11 10:42