Delayed US Inflation Report Unlikely to Impact Fed Rate Cut Decision

Crypto market watchers have set their sights on the delayed US inflation report for September due out on Friday, which will exceed 3% for the first time in 2025, which could have a domino effect on crypto markets.

The US Bureau of Labor Statistics is scheduled to publish Consumer Price Index (CPI) for September on Friday. There was a delay due to the ongoing government shutdown, which is now in its 24th day.

Economists predict September inflation rose 0.4% month-on-month and 3.1% year-on-year, making it the first time overall CPI has exceeded 3% this year, according to on the business economy.

CPI printing could affect cryptocurrencies

The CPI report will be the first major data release since the US government shutdown earlier this month.

Investor Ted Pillows he said that if CPI reaches 3.1% or above, the chances of a rate cut could diminish, but if it gets to 3% or below, “it will be good for the markets”.

Related: US government shutdown ‘likely’ to end this week, Trump aide says

Analyst “Ash Crypto” he agreedsaying that higher than 3.1% will be bearish for markets “as it will mark the highest CPI print since June 2024”.

Around 3.1% will be in line with expectations, but below 3.1% is a “perfect scenario for risk assets”.

“There will be a rate cut and also the month-on-month CPI increase will be only 0.1% or 1.2% annually. This will also increase the chances of further rate cuts and cause liquidity to flow into risk assets.”

“We realize the Fed has said they are now focused on the employment picture, but whether or not tomorrow’s CPI data is much different from expectations could impact their thinking,” Matt Maley, chief market strategist at Miller Tabak. he said Bloomberg.

“So it’s still going to have a big impact on the markets if it actually goes against what the consensus thinks,”

But higher-than-expected inflation numbers are unlikely to deter the Federal Reserve from cutting rates, according to to Barron.

The central bank is more focused on the weakening labor market and the probability of a rate cut next Wednesday is 98.3%, according to to the CME futures predictive markets.

However, the continued government shutdown could complicate the economic picture ahead of the Fed’s December meeting, when further rate cuts are expected.

Markets march slightly higher

The cryptocurrency market capitalization increased by 1.8% in the last 24 hours to reach $3.8 trillion.

Bitcoin (BTC) led the move with a brief rally above $111,000 in late Thursday trading falling back to the $110,500 level at the time of writing.

Magazine: Bitcoin Will Suffer If It Can’t Catch Gold, XRP Returns To The Fight: Trade Secrets