TechFlow news: October's U.S. CPI missed market expectations. Specifically, the month-on-month CPI was 0%, below the expected 0.1%; core CPI rose 0.2% month-on-month, missing the forecasted 0.3%; year-on-year CPI increased by 3.2%, lower than the expected 3.3%; and core CPI rose 4.0% year-on-year, below the expected 4.1%.
With CPI declining and signs of weakening in the U.S. economy emerging, markets anticipate a potential shift in the Federal Reserve's monetary policy, possibly ending its tightening cycle earlier. According to CME data, the probability of a 25-basis-point rate hike by the Fed in December has dropped to just 0.2%. For next December, markets expect the federal funds rate to fall into the range of 4.25%-4.5%. Market pricing implies a total of 100 basis points of rate cuts by the Fed by then.
A macroeconomic environment of monetary easing and interest rate cuts means more liquidity will likely become available in the market, which is a significant positive for risk assets. The stablecoin supply in the cryptocurrency market is expected to surpass previous highs in the future.
