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- US inflation is at an all-time high of 40 years.
- U.S. consumer prices in January were 7.5 percent higher than analysts had expected.
- In financial markets, U.S. Treasury earnings increased on Thursday, while stock markets and Altacines were negative.
- read more: Dutch inflation at a record level of 6.4%: The gap with savings interest is very high
U.S. consumer prices rose sharply in January, the highest level in nearly 40 years in the United States.
New step US Government Statistics Life averaged 7.5 percent more last month than it did a year ago. In December it was still 7 per cent. As a result, inflation has risen sharply than economists expect on average.
For example, as in the Netherlands, inflation was mainly driven by energy and food prices. However, without those two, the price level would still be 6 percent higher. This so-called major inflation is the highest level since 1982.
According to experts, the situation in the United States is different than in Europe. This is because on the other side of the Atlantic there are already signs of a so-called wage-price spiral, with companies sharply raising wages for employees, thereby further inflation.
Interest rates rose, with stock markets and altcoins down
Financial markets echoed sharply higher than expected on Thursday. Interest rates rose: for example, the 10-year US Treasury dividend increased Just over 2 percent⁇
On the other hand, equity markets reacted negatively. The Extensive S&P 500 code It opened 1 percent lower on Thursday afternoon, down 1.8 percent at the end of the trading day. Technology-related Nasdaq Composite rose 1.5 percent at the start and fell 2.1 percent at the end of the trading day.
Markets are closely monitoring the inflation figures of the world’s largest economy. This is because the US Federal Reserve is likely to raise interest rates soon to curb high inflation.
It is unthinkable that the Federal Reserve will do this at a rapid pace, with a relatively large interest rate immediately. Investors will not see this happening as it will affect the stock valuation.
Simply put, investing in risky assets such as equities – and cryptocurrencies – will become relatively less attractive as more secure securities and fixed-rate savings accounts begin to make more profits.
On top of that Crypto Market Bitcoin initially lost 1 percent on a 24-hour basis, but then rebounded. The main cryptocurrency traded near $ 45,000 on Thursday evening. Many Altcoins fell sharply, losing nearly 5 percent from the Solana platform to Sol and nearly 6 percent to the playful Shiba Inu currency.
In January, after the central bank’s policy meeting, central bank chairman Jerome Powell said continued rate hikes were not in question. In addition, the central bank could tighten monetary policy in recent years by reducing the massive debt mountain that ended up in the central bank’s balance sheet through bond purchases.
read more: The stock market is also trying to recover in Europe: 2 charts show why it should go a little further
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