Near the close of last year, U.S. inflation began to decline. The tendency was confirmed by the recent improvement in the Consumer Price Index statistics. In November, inflation decreased to 7.1%, which was less than anticipated. In December, it decreased even further, to 6.5%. The streak has been restarted.
The long-awaited figures for January have now been made public by the U.S. Bureau of Labor Statistics. The same source reports that inflation decreased to 6.4%. However, the reported amount is larger than anticipated.
JPMorgan Chase & Co. economists anticipated that the economy would contract to 6.2% in January from 6.5% the previous month. However, the experts at Morgan Stanley predicted that the figure would rise by 0.4% on a monthly basis.
Any figure below 6% to 6.3% will probably have a beneficial effect on the market, according to the strategy of the erstwhile FinServ powerhouse. On the contrary, it asserted that any figure higher than 6.4% would have a negative impact on stocks.
Thus, stock prices might be anticipated to modestly retrace while bearing in mind the most recent disclosed statistic. In retrospect, it is reasonable to anticipate that Bitcoin and the rest of the cryptocurrency industry will do the same.
The Federal Reserve officials' ability to predict the timing of the next interest rate rise will be significantly aided by the most recent data set released by the Bureau of Labor. Markets presently anticipate the Fed to hike the number from its current target range of 4.5%-4.75% twice more after eight rises in interest rates.