US April CPI Beats Forecasts, Weighing on Bitcoin as Fed Cut Bets Recede

US consumer prices rose more than expected in April, further dimming expectations for Federal Reserve interest-rate cuts. Bitcoin also came under pressure immediately after the data.

CoinDesk reported that the Bureau of Labor Statistics, an agency of the US Department of Labor, said the consumer price index rose 3.8% in April from a year earlier, above the 3.7% market forecast.

On a monthly basis, the CPI increased 0.6%. That exceeded the 0.3% estimate and was higher than the 0.2% gain in March.

Core CPI, which excludes food and energy, also topped expectations.

Core prices rose 2.8% from a year earlier, above the 2.7% forecast. They increased 0.4% from the previous month, compared with expectations for a 0.2% rise.

The data revived concerns that inflation could be reaccelerating, leading markets to pull back expectations for Fed rate cuts.

CoinDesk said the report strengthened the case for the Fed to leave rates unchanged not only at its June meeting, but through the end of the year.

Bitcoin weakened immediately after the CPI release.

It traded at about $80,700 after the data, down roughly 1.2% over the past 24 hours, according to CoinDesk.

US stock-index futures also moved lower broadly, while the yield on the 10-year Treasury climbed to 4.44%. West Texas Intermediate crude traded at about $101 a barrel, up roughly 3% on the day.

Separately, markets are watching whether Kevin Warsh will be confirmed this week as the next Fed chair. He is expected to formally take office on May 15 as the successor to Jerome Powell.