US Prices Rise Modestly in June, Fueling Speculation of Fed Interest Rate Cut and Potential Boost for Crypto Prices

The US saw a modest rise in prices in June, which could lead to the Federal Reserve cutting interest rates in September and potentially boosting prices in risk assets such as cryptocurrency. Consumer spending slowed slightly last month, and easing price pressures and a cooling labour market may give the Fed confidence that inflation is moving towards its 2% target. The Fed's preferred gauge for inflation, the price index of personal consumption expenditures, rose 0.1% in June and 2.5% compared to a year ago. A cut to interest rates could make borrowing cheaper for investors and lift crypto asset prices, with some analysts predicting Bitcoin could reach $100,000 this year.