Bitcoin · Federal Reserve (FED) · Iran · CryptoSlate
Research from the Richmond Fed shows producer prices flow into consumer prices with lags that vary widely by category
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Wednesday's May CPI report already showed gasoline up 40.5% year over year, and Thursday's producer data suggests that the pipeline still has plenty left to deliver.
Key facts
- The Federal Open Market Committee meets on June 16 and 17, the first meeting chaired by Kevin Warsh since he took over from Jerome Powell in May, and prediction markets price a hold in the 3.50%
- Bitcoin is +1.61% over the past 24 hours and currently sits at rank # 1 by market cap
- Energy did most of the damage, as final demand goods climbed 2.8%, the largest monthly increase since the series began in December 2009, with energy prices up 10.7% and gasoline surging 23.4%
- Prices for processed goods sold between businesses rose 13.3% over the past 12 months, the largest annual increase since August 2022, which means the costs feeding into future consumer prices
Summary
01 May US PPI rose 1.1% and 6.5% annually, its fastest pace since November 2022, while Bitcoin fell on the report. 02 The hotter read weakens Fed rate-cut hopes, keeping liquidity tight and pressuring Bitcoin alongside other risk assets. 03 June CPI, the June 25 PCE release, and the Fed’s June meeting will show whether energy costs keep feeding through. Bitcoin was designed as a hedge against inflation, but every hot inflation report in the past year has knocked its price lower, and Thursday's data was no different. Energy did most of the damage, as final demand goods climbed 2.8%, the largest monthly increase since the series began in December 2009, with energy prices up 10.7% and gasoline surging 23.4% as the Iran conflict keeps oil supply at risk.