CPI meets market expectations, US stocks rise, Bitcoin and Ethereum enter consolidation phase.

According to the Consumer Price Index (CPI) released by the US Bureau of Labor Statistics last night, it met market expectations. The three major US stock indices have risen for three consecutive days, with the S&P 500 and Dow Jones Industrial Average closing at their highest levels since January 2022. Cryptocurrencies have entered a consolidation phase this week, with BTC holding above 41K and ETH struggling around 2,200.

CPI Meets Expectations, Awaits Fed Interest Rate Decision

The US Bureau of Labor Statistics released the Consumer Price Index data last night, showing a 0.1% increase in CPI for November, up 3.1% from the same period last year. Excluding the more volatile food and energy prices, the core CPI rose 0.3% from the previous quarter and 4% from the same period last year. These figures align with market expectations and are relatively consistent with October.

The Federal Reserve is currently holding a two-day interest rate meeting, with the latest interest rate policy and economic forecasts to be announced early Thursday morning.

According to the CME FedWatch Index, 98.4% of investors are certain that the Fed will maintain interest rates at a high range between 5.25% and 5.5%, but they will be paying close attention to Chairman Powell's remarks during the press conference after the meeting, as well as the interest rate dot plot and economic forecasts released during this meeting, which will show each committee member's view on next year's interest rates.

The market currently believes that the Fed may start a rate-cutting cycle as early as May next year.