Markets, Bitcoin, Inflation, US, News The headline news is sending markets, bitcoin included, lower, but isn’t likely to derail the Fed from trimming interest rates next week. 

U.S. inflation for August came in hotter than expected, though likely not enough to derail the Federal Reserve from cutting interest rates next week.

The Consumer Price Index (CPI) rose 0.4% last month versus expectations for 0.3% and 0.2% in July. On a year-over-year basis, CPI was higher by 2.9% versus a forecast 2.9% and 2.7% in July.

Core CPI, which excludes the volatile food and energy components, climbed 0.3% in August against forecasts for 0.3% and July’s 0.3%. Year-over-year core CPI rose 3.1% compared with the 3.1% forecast and July’s 3.1%.

Bitcoin slipped about 0.5% from $114,300 to $113,700 in the immediate aftermath of the data.

Prior to the CPI data, markets were pricing in a 92% chance of a 25 basis point cut at the upcoming Fed meeting and an 8% chance of a 50 basis point cut, according to CME FedWatch. The report likely puts to rest any idea of a 50 basis point move, which had gained steam following last Friday’s soft jobs report and Wednesday’s weak PPI numbers.

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