As has been the case all week, bitcoin (BTC) is trading in a tight range around the $77,000 level in U.S. morning action.
There was some economic news on Friday morning, and it wasn’t pretty. The University of Michigan Consumer Sentiment Index for May fell to a record low 44.8 from 48.2 previously and versus economist forecasts for 48.2. The Expectations Index also fell to a record low of 44.1.
The UMich 1-year Consumer Inflation Expectations Index rose to 4.8% from 4.5% previously. The 5-year Inflation Index rose to 3.9% from 3.4%.
It’s yet another disturbing stagflationary data point confronting Kevin Warsh as he’s set to take over as chairman of the Federal Reserve. President Trump appointed Warsh in the hope that he would lead the central bank to cut interest rates, but the Iran war has sent oil prices soaring and re-ignited what had been cooling inflation.
Rate traders are now pricing in more than a 70% chance of one or more rate hikes by the end of 2026.
Warsh’s official swearing-in is set for 11 am ET.
U.S. stocks, meanwhile, are posting modest gains ahead of the three-day weekend. The Nasdaq is higher by 0.3% and the S&P 500 by 0.4%.
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