“Compared with the last reporting period, price growth was the same or slower in all Districts,” according to the National Summary of the Federal Reserve’s just-released Beige Book.
Combined with soft inflation reports from the past two days and dovish comments from New York Fed President John Williams, the news would appear to take any chance of a July rate hike off the table.
Additionally, odds of a boost in rates by September have dipped to 48% from nearly 70% one week ago, per CME FedWatch.
The two-year U.S. Treasury yield has slipped further, now down 7 basis points on the day to 4.12%. Bitcoin continues in a tight range on both sides of the $65,000 level.
“One of the biggest Driving Forces in the Future for Jobs, are Data Centers,” said President Trump in a Truth Social post.
He said New York Governor Kathy Hochul’s executive action to halt construction of new data centers in that state was a “terrible decision.”
“Data Centers are tremendous WINS for the States and Communities that are lucky enough to get them.”
Down across the board earlier, former bitcoin miners turned data center players appear to have gotten a boost from the president’s post. Hut 8 (HUT) is leading gains with a 5.2% advance. CleanSpark (CLSK) is up 4%, IREN (IREN) is up 3%, and TeraWulf (WULF) — probably most exposed to New York’s political situation — is up 2.7%.
Market maker Wintermute cautioned that bitcoin’s recent rally above $65,000 faces a key technical hurdle. It noted that $65,000 has repeatedly acted as resistance for bitcoin and profit-taking has already emerged.
The firm said investors are now watching Thursday's PCE inflation report, the end-of-quarter options expiry, and developments in the Iran conflict, warning that one favorable inflation reading does not yet signal a lasting shift in market sentiment.
On day two of his Congressional testimony — this time before the Senate — Fed Chairman Kevin Warsh conceded that AI-related demand could cause price pressures in the coming months.
He declined to call such one-time change in prices inflationary though, thus suggesting that it may not require a Fed policy response (i.e., higher rates).
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