The US June CPI decreased by 0.4% month on month, with an annual rate of 3.5% and a core CPI of 2.6%. BTC rose from approximately $62000 to $64900, ETH rose 7% to $1884, and approximately $300 million in short positions were liquidated. Federal Reserve Chairman Kevin Walsh stated in congressional testimony that the Fed has zero tolerance for sustained high inflation; If the policy is correct, the rise in inflation over the past five years will become a thing of the past; Federal Reserve Chairman Kevin Walsh disagrees with the judgment that the task has been completed and has not provided any policy guidance for the next steps.
AI interpretation: The significant drop in inflation data directly breaks the market's concerns about price stickiness, and this unexpected cooling provides solid support for the Federal Reserve's policy shift. The market sentiment quickly rebounded, and the sharp fluctuations in risk asset prices reflected the repricing of funds' expectations for loose monetary policy. The statement of the Federal Reserve Chairman maintains the cautious tone of policy, aiming to anchor market expectations by emphasizing anti inflation determination. This data release marks further confirmation of the downward path of inflation and effectively alleviates the pressure of tightening policies on financial markets.
