US CPI Meets Expectations, Locks In 25 Bps Rate Cut As Bitcoin Pulls Back
US CPI inflation data landed right on target Thursday, cementing expectations of a Federal Reserve rate cut next week and triggering a modest dip in crypto prices. The Consumer Price Index (CPI) rose 2.9% year-on-year in August, in line with forecasts, while core CPI (excluding volatile food and energy prices) advanced 0.4% from July, slightly above estimates , data from the Bureau of Labor Statistics showed. Polymarket bettors quickly priced in a September rate cut, with odds of a 25 basis point cut surging from 79% before the data to as high as 91%, before falling back to near 84%. Polymarket September rate cut contract (Source: Polymarket ) Conversely, odds of 50 bps rate cut plummeted from 18.9% to 9.1% before rising to 14%. A soft jobs report on Friday and Wednesday’s weak PPI numbers had boosted bets on a bumper rate cut this month. The CME FedWatch tool also reflects near-unanimous expectations, with analysts assigning a 90.8% chance the Fed trims rates by ...