Quick Take
Data from Trading Economics shows the United States economy grew at an annualized rate of 1.6% in the first quarter of 2024, falling short of the forecasted 2.5% and slowing down from the previous quarter’s 3.4% growth. Despite the slower pace, the economy continues to expand in an already overheated environment, with inflation persisting above the target level.
US GDP Growth Rate: (Source: Trading Economics)
US bond yields rose in response to the economic data, with the 2-year Treasury yield surpassing 5%. The front end of the yield curve, particularly the 3-month and 6-month yields, are now hovering around 5.4%. With the current federal funds rate at 5.25% to 5.5%, the market is not anticipating rate cuts for at least six months.
US03MY and US06MY: (Source: TradingView)
The CME FedWatch tool tracks futures markets and suggests that investors expect no rate cuts until July, followed by a single cut in September and a pause for the remainder of the year. This outlook marks a significant shift from the beginning of the year when markets were pricing in around six rate cuts.
CME Fed Watch Tool: (Source: CME)
As a result of the economic news, Bitcoin (BTC) is trading at approximately $63,300, while US equity markets have declined by more than 1%.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
GIPHY App Key not set. Please check settings