Seema Shah pointed out the key: the main cause is rising energy prices, housing is cooling down, and the secondary effects have not yet taken shape — this gives Powell patience capital, but the risks are not fully eliminated, and the tail risk of rate hikes this year still exists.

CryptoWorld News reports that Seema Shah, Chief Global Strategist at Principal Asset Management, stated that the U.S. inflation rate remains at an unsettling high of 4%, but the weaker-than-expected core data has indeed eased some pressure. Since the rise in energy prices is the main driving factor and housing costs have eased, we have not yet seen clear signs of a broader second-round effect. This should allow the Federal Reserve to remain patient. Although the market seems to be overpricing further rate hikes this year, that risk still exists, and today’s data has not eliminated that risk.