The latest U.S. CPI data just reminded everyone that inflation is still far from over. April inflation came in at 3.8%, higher than the expected 3.7% and sharply above March’s 3.3%, marking the highest level in nearly three years. Core CPI also climbed to 2.8%, showing that price pressures are still strong across the economy.



Because of this, markets are now worried that the Federal Reserve may keep interest rates higher for a longer time instead of cutting them soon. Right after the news, Wall Street reacted negatively as the S&P 500 and Nasdaq pulled back from recent highs.

In my opinion, this shows how sensitive global markets still are to inflation data. Higher inflation creates pressure on stocks and crypto in the short term, but it also increases uncertainty about future economic growth. Energy prices and geopolitical tensions are becoming major drivers again, and investors are watching the Fed more closely than ever.
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