CPI hits a two-year low, with minimal currency price fluctuations, decoupled from traditional financial markets

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CPI hits a two-year low, with minimal currency price fluctuations, decoupled from traditional financial markets

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CPI Drops to Two-Year Low, Market Expects Fed to Hold Steady

The U.S. Department of Labor reported on Tuesday that the Consumer Price Index (CPI) for May had an annual increase of 4%, marking a two-year low. The core CPI, which excludes volatile food and energy prices, was at 5.3%, showing a decreasing trend. This could alleviate pressure on the Federal Reserve to continue raising interest rates. According to the FedWatch tool by CME Group, the market expects a 93% chance that the Fed will keep rates unchanged at the meeting on Wednesday, up from around 70% previously.

Crypto Price Volatility Low, Decoupled from Traditional Financial Markets

After experiencing significant corrections over the weekend following the SEC's lawsuits against Binance and Coinbase last week, the cryptocurrency market's total market capitalization has returned to mid-March levels. However, in recent days, the market seems to have returned to a more stable trend, with yesterday's hearing between Binance and the SEC having little impact on the crypto market.

On the contrary, the stock market continues to rise, driven by AI. The S&P 500 index has risen by 1.95% in a week, with Tesla making a strong comeback, gaining 13% in a week and propelling CEO Elon Musk back to the position of the world's richest person.