In January CPI<\/span> rose 0.5% MoM and 6.4% YoY, Core CPI<\/span> up 0.4% MoM and 5.6% YoY.<\/p>\n The published data pointed to resilience in price growth for services components in the index. They were cited<\/a> by Fed Chair Jerome Powell as an obstacle to broad inflation decline over the course of 2023.<\/p>\n The core measure rose 0.5% MoM, the highest in five months, and leaves open the possibility of a 25 basis-point increase at the March 22 meeting.<\/p>\n “The figures show that the Fed’s effort to curb inflation will not be easy. \u2026 The Fed’s task now is to set priorities for inflation that remains too high, given rising risks to financial stability from the collapse of SVB”,<\/em> \u2014 TOPLive Bloomberg<\/a>.<\/p>\n<\/blockquote>\n Economists differed on the Fed’s next steps\u2014from a pause and a 0.25% hike to a rate cut at this meeting (Nomura<\/a>).<\/p>\n Swap and option markets priced in a path of continued tightening at a slower pace. The probability of this scenario rose from 65% to 82.7% .<\/a><\/p>\n U.S. Treasuries reacted similarly. Stocks and currencies, by contrast, interpreted the data as not supporting a hike in the policy rate.<\/p>\n Total market capitalization of digital assets rose 13.3% on the day. Bitcoin jumped 14.6%, testing the $26,000 mark<\/a>, Ethereum up 8.9% to $1,740, according to CoinGecko<\/a>.<\/p>\n “It seems unlikely that the Fed will continue an aggressive rate-hiking regime,”<\/em> \u2014 explained<\/a> by Grayscale analysts.<\/p>\n<\/blockquote>\n\n
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