Bitcoin Holds Firm as Fed Hike Odds Reach New Heights
The Federal Reserve's latest inflation report has left policymakers with mixed signals ahead of their September meeting. The consumer price index rose 0.4% in August, with gasoline prices accounting for over one-third of the increase at 3.9%. However, core inflation, which excludes food and energy, accelerated to 2.4% annually, suggesting that the recent pace is not just due to volatile components.
The report has kept the probability of a rate hike in September high, with futures now indicating an 85% chance of a quarter-point increase on September 15-16. This has had little impact on Bitcoin, which held its daily gain and remained steady at $78,683.
Despite the mixed signals, Federal Reserve Governor Christopher Waller's conditional case for a rate hike remains in play. In his previous speech, he mentioned that continued progress toward the Fed's 2% goal would incline him to support holding the policy rate steady, but a hot report could lead him to consider a hike.