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Inflation in the US has declined, but not as much as expected. Markets reacted: bitcoin and ethereum are losing in price.
Inflation in the US in August was 8.3%. Although this is less than the jumping figure – 8.5% – the figures of August did not meet the expectations of the market. Participants expected inflation to decline to 8.1%. After confirming 8.3%, the markets began to decline. In particular, the recession affected the cryptocurrency. Bitcoin (BTC) and Ethereum (ETH) were in the red zone, losing in a day. According to CoinGecko, at the time of publication, the top two coins had lost 5.6% and 7.2%.
Fuel prices from the U.S. have declined. At the same time, medical care, real estate and food have risen in price. The broad market reacted to the data with a decline. Before the opening, futures for the S&P500, Dow Jones and Nasdaq went down.
One of the main negative factors that affected the inhabitants of the United States and the rest of the world was the rise in energy prices. In particular, it is largely related to the events of February 24.
To deal with inflation, US Federal Reserve, which performs the role of a central bank in the country, has raised interest rates several times. Fed Chairman Jerome Powell is expected to raise rates by another 75 basis points next week amid a negative result.
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