The latest inflation report has stirred up financial markets, with key indicators exceeding expectations. This has led to a drop in Bitcoin and Ethereum values. Experts attribute the inflation surge to rising gas and housing costs. The report suggests that the Federal Reserve may rethink its plans for cutting interest rates this year. Despite the inflation concerns, Bitcoin has continued to rise due to factors such as ETFs and speculative demand. However, the market awaits the Fed's March minutes for further guidance on interest rate decisions.
Inflation remains elevated despite a recent slowdown, with February prices rising 3.2% year-over-year. Gasoline, shelter, and services like sporting events and tax preparation saw significant increases. While real wages are improving, inflation has eroded purchasing power. Interest rates, used by the Federal Reserve to combat inflation, may not be cut soon, affecting borrowers with high-interest debt.
