US Inflation Cools to 2.4%, Boosting Rate Cut Hopes
The U.S. annual Consumer Price Index (CPI) slowed to 2.4% in January 2026, according to data released on February 13. This reading came in below the consensus forecast of 2.5% and marked a deceleration from the 2.7% rate recorded in December. The cooling trend was reinforced by core CPI, which strips out volatile food and energy prices, easing to a 2.5% year-over-year rate—its lowest level in several years. This unexpectedly soft inflation print provides the Federal Reserve with greater flexibility regarding its monetary policy.
Crypto Assets Rally on Dovish Fed Outlook
The softer inflation report immediately bolstered investor expectations for a more dovish stance from the Federal Reserve. A lower inflation environment increases the probability of earlier or more significant interest rate cuts, which typically makes risk assets like cryptocurrencies more attractive by lowering borrowing costs and increasing market liquidity. In direct response to the news, digital asset markets showed renewed strength. The token for MYX Finance, for example, rebounded sharply from its intraday low as traders priced in the improved outlook for risk assets, underscoring how closely the crypto market is tied to macroeconomic data and central bank policy expectations.
