{"id":9815,"date":"2025-09-04T17:17:10","date_gmt":"2025-09-04T17:17:10","guid":{"rendered":"https:\/\/bitunikey.com\/news\/inflation-data-sinks-bitcoin-making-trumps-massive-rate-cuts-less-likely\/"},"modified":"2025-09-04T17:17:14","modified_gmt":"2025-09-04T17:17:14","slug":"inflation-data-sinks-bitcoin-making-trumps-massive-rate-cuts-less-likely","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/inflation-data-sinks-bitcoin-making-trumps-massive-rate-cuts-less-likely\/","title":{"rendered":"Inflation data sinks Bitcoin, making Trump\u2019s massive rate cuts less likely"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Latest inflation data suggest that the Fed will likely remain conservative in its rate cuts, far short of Trump\u2019s preferred 1% level.<\/p>\n<div id=\"cn-block-summary-block_28f6cad433534b5733996d91e55de3cb\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>U.S. services inflation remained high in August, removing hopes for a higher rate cut<\/li>\n<li>The Fed will still likely cut interest rates by 25 basis points, as expected<\/li>\n<li>Higher-than expected interest rates chances hurt Bitcoin<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Latest inflation data hurt the chances that the Fed might cut rates more than expected. On Thursday, September 4, Bitcoin (BTC) was down 2.4%, trading at $109,444, following <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.investing.com\/economic-calendar\/ism-non-manufacturing-prices-1049\" target=\"_blank\">reports<\/a> that services inflation remains high. What is more, altcoins lost even more, with the top 20 tokens down 2.7%. <\/p>\n<p>Crypto markets reacted to the ISM Services Prices Index, which was at 69.2 in August. Services inflation was below the expected 69.5 level as well as the 69.9 level the previous month. Still, the figure remains at levels last seen in 2023, and any reading above 50 means that prices are rising.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">U.S. ISM Non-Manufacturing Prices | Source: Investing.com<\/figcaption><\/figure>\n<p>Elevated inflation figures will likely make the Federal Reserve more cautious when deciding on interest rates in the upcoming September 17 meeting. Still, a rate cut of 25 basis points remains the most likely outcome, on which Polymarket traders put an <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/polymarket.com\/dashboards\/fed-rates\" target=\"_blank\">86% probability<\/a>. <\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Trump\u2019s massive rate cuts less likely<\/h2>\n<p>New inflation data will likely undercut Donald Trump\u2019s push for a major rate cut. The president has been pushing for lower interest rates almost since he was elected. However, since July, Trump has set a new target of 1%, a massive change from the current 4.25% to 4.50% range.<\/p>\n<p>Still, Trump has more avenues to bypass the Fed. For one, the Treasury Department, under Trump\u2019s direct control, continues to buy its own Treasuries, most recently $2 billion on September 3. This operation, which Investing.com analyst <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/JesseCohenInv\/status\/1963255913730445416\" target=\"_blank\">called<\/a> \u201cQE without the Fed,\u201d aims to reduce the borrowing cost for the government. <\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Latest inflation data suggest that the Fed will likely remain conservative in its rate cuts, far short of Trump\u2019s preferred 1% level. Summary U.S. services inflation remained high in August,&hellip;<\/p>\n","protected":false},"author":1,"featured_media":8567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=9815"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9815\/revisions"}],"predecessor-version":[{"id":9816,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9815\/revisions\/9816"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/8567"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=9815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=9815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=9815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}