Good morning. US inflation data are expected to show abating price pressures. Traders are yanking cash out of inflation-linked bonds. Bitcoin jumps to $50,000. Here’s what’s moving markets. — Isabelle Lee
January data due out Tuesday are widely expected to confirm continued disinflation in the US, paving the way for the Federal Reserve to start cutting interest rates this year. The Consumer Price Index is forecast to have dropped to 2.9% year-on-year — the first reading below 3% since March 2021 — from 3.4% in December, according to estimates compiled by Bloomberg. A New York Fed report published Monday showed medium-term inflation expectations have dropped to the lowest since at least 2013, bolstering investor sentiment. The inflation debate continues to divide officials, however, with Fed Governor Michelle Bowman stressing the benchmark lending rate is in a good place while Richmond Fed’s Thomas Barkin says inflation is close to target — but not there yet.