Hot inflation data pours cold water on Federal Reserve rate cut hopes

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Hot inflation data pours cold water on Federal Reserve rate cut hopes Bitcoin was trading at $80,814 following the news, down 1.2% over the past 24 hours. By James Van Straten | Edited by Shaurya Malwa May 12, 2026, 12:47 p.m. 1 min read Make preferred on What to know : April CPI rose 0.6% for the month and 3.8% year-over-year. Markets continues to price in no Fed rate cuts for the June 17 meeting. Bitcoin was trading at $80,600 following the report. U.S. inflation data came in hotter than expected on Wednesday, reinforcing expectations that the Federal Reserve will keep interest rates steady at 350-375bps not only at its June 17 meeting, but also likely through the end of the year. The Consumer Price Index (CPI) year-over-year rose 3.8 % in April, according to a report from the Bureau of Labor Statistics. Economists' forecasts had been for a rise of 3.7% following March's 3.3% increase. On a month-over-month basis, CPI rose 0.6%, above expectations of 0.3% and up from March's 0.2%. Core CPI, which excludes food and energy costs, rose 0.4% in April versus forecasts of 0.2% and March's 0.3%. Year-over-year core CPI was higher by 2.8% versus forecasts of 2.7% and March's 2.6%. Under pressure this morning, bitcoin BTC $ 80,621.04 traded at $80,700 following the report, down 1.2% over the past 24 hours. U.S. stock index futures were down across the board, and the 10-year treasury yield came in higher at 4.44%. WTI crude oil is posing a threat to the markets, and is higher by 3% on the day at $101. Ahead of the CPI data, markets were pricing in a 98% probability that the Federal Reserve would leave interest rates unchanged at its March meeting, according to the CME Fed Watch tool . Kevin Warsh is set to be confirmed as the next Federal Reserve Chair this week, as he is expected to take over from Jerome Powell on May 15. Bitcoin News Inflation More For You Bitcoin will 'explode' past $90,000 on way back to $126,000, Arthur Hayes says By Shaurya Malwa | Edited by Sheldon Reback 1 hour ago Arthur Hayes, the BitMEX co-founder who now runs Maelstrom, said bitcoin's return to its October high is a "foregone conclusion," and he is taking his fund to maximum risk, with HYPE, ZEC, and NEAR as his top altcoin picks. What to know : Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, argues that bitcoin bottomed near $60,000 earlier this year and is now on track to surpass its prior high and reach $126,000. He says a break above $90,000 could trigger an “explosive” rally as call-option sellers are forced to buy bitcoin,... Read full story Latest Crypto News CleanSpark stock slides 9% as quarterly earnings miss estimates on bitcoin holdings loss 12 minutes ago DTCC builds out blockchain-based collateral system with Chainlink integration 33 minutes ago Exodus dumps 1,000 bitcoin: Why the crypto wallet is cashing out to fund a payments empire 1 hour ago Bitcoin will 'explode' past $90,000 on way back to $126,000, Arthur Hayes says 1 hour ago Crypto markets stalls before inflation data as XRP, SOL rebuffed from key price levels 1 hour ago Bitcoin hovers above key support as equities, crypto retreat 2 hours ago Top Stories Clarity Act, in the flesh, unveiled by U.S. Senate Banking Committee before hearing 8 hours ago 'A big nothing burger': A Q&A with Strategy's Michael Saylor on selling bitcoin 16 hours ago Anthropic warns against unauthorized stock exposure as token markets imply trillion-dollar valuation 4 hours ago 'Bitcoin transactions can be monitored’: Ray Dalio explains why central banks won’t touch BTC 7 hours ago ETH/BTC ratio falls to 10-month low as ether continues to underperform bitcoin 2 hours ago Bitcoin miner MARA sold $1.5 billion of bitcoin as it shifts toward AI infrastructure 5 hours ago