Leading Inflation Data Tracked by FED Has Been Announced! How Did Bitcoin and the Dollar React?

The data on personal consumption expenditures, which are closely followed by the FED while making its decision to increase interest rates, and which are accepted as the leading inflation indicator, were announced.

Accordingly, personal consumption expenditures were announced as 0.1% in March, below the expectations of 0.3%.

It was announced as personal consumption expenditures, adjusted for energy and food prices, and came in at 0.3%, in line with the 0.3% expectation.

Here is the first reaction of Bitcoin and Dollar Index after the data

FED Interest Rate Decision and Decision Text Will Determine the Direction of the Markets

The next US inflation data will be released on May 10.

Before this data, the FED interest rate decision will be announced on May 3, 2023.

While making the interest rate decision on May 3, the FED will take into account the inflation data announced on April 12, which came under expectations, data on personal consumption expenditures announced today and data on the labor market.

The turbulence experienced by the First Republic Bank in the USA signals that the banking crisis has not passed yet and that the FED should slow down in the rate of increase in interest rates.

Expectations are for the interest rate hike cycle to be completed on May 3, with the decision to increase interest rates by 25 basis points, and to keep interest rates at these levels for a while.