{"id":17161,"date":"2025-03-11T10:16:42","date_gmt":"2025-03-11T10:16:42","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=17161"},"modified":"2025-03-11T10:16:42","modified_gmt":"2025-03-11T10:16:42","slug":"trumps-first-inflation-report-due-as-risk-investors-seek-signs-of-cooling","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=17161","title":{"rendered":"Trump\u2019s First Inflation Report Due as Risk investors Seek Signs of Cooling"},"content":{"rendered":"<div>\n<p>The consumer price index (CPI) report due Wednesday will be the first under President Donald Trump&#8217;s tenure, with signs of cooling likely to raise the chance of an interest-rate cut and lift the spirits of investors in risk assets, who have been hammered in recent weeks.<\/p>\n<p>The Bureau of Labor Statistics is forecast to say headline inflation declined year-over-year to 2.9% from 3%, while core inflation, which excludes volatile food and energy prices, also lost 0.1 percentage point to 3.2%.<\/p>\n<p>Slower inflation raises the chance of an interest-rate cut, making riskier investments more attractive. CPI, which measures the cost of a basket of goods and services across the U.S. economy, has accelerated for four consecutive months.<\/p>\n<p>In the past few weeks, the S&amp;P 500 has dropped almost 10% from its all-time high and <a href=\"https:\/\/www.coindesk.com\/markets\/2025\/03\/11\/bitcoin-and-nasdaq-could-stabilize-as-bull-positioning-in-japanese-yen-appears-stretched\" target=\"_blank\">bitcoin (BTC) has lost<\/a> around 30% to around $80,000. <\/p>\n<p>Both Trump and Treasury Secretary Scott Bessent have emphasized the need for lower 10-year Treasury yields to bring down the federal funds rate. So far, this strategy appears to be working, with the 10-year yield falling to 4.2% from 4.8%, the <a href=\"https:\/\/www.coindesk.com\/markets\/2025\/03\/05\/dollar-index-declines-below-105-as-bitcoin-surges-past-usd88-000\" target=\"_blank\">dollar index<\/a> (DXY) weakening below 104 and WTI crude oil stabilizing in the mid-$60 range \u2014 aligning with the administration&#8217;s economic plans.<\/p>\n<p>Meanwhile, the <a href=\"https:\/\/truflation.com\/\" target=\"_blank\">Truflation Index<\/a> has hit 1.35%, its lowest level since September 2020. However, five- and 10-year inflation expectations remain above 2%, indicating that Trump still has work to do in managing long-term inflation expectations.<\/p>\n<p>At the Federal Open Market Committee (FOMC) meeting on March 18-19, Chair Jerome Powell is expected to hold the federal funds rate steady at 4.25%-4.50%, according to the <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" target=\"_blank\">CME FedWatch Tool<\/a>. <\/p>\n<p>Investors will be closely watching the inflation report, as a cooler-than-expected print could prompt the Federal Reserve to consider rate cuts. Conversely, a &#8220;hot&#8221; inflation reading would likely keep rates higher for longer and put further pressure on risk assets.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The consumer price index (CPI) report due Wednesday will be the first under President Donald Trump&#8217;s tenure, with signs of cooling likely to raise the chance of an interest-rate cut and lift the spirits of investors in risk assets, who have been hammered in recent weeks. The Bureau of Labor Statistics is forecast to say [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-17161","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/17161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17161"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/17161\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}