As has been the case all week, bitcoin (BTC) is trading in a tight range around the $77,000 level in US morning action.
There was some financial news on Friday morning, and it wasn’t pretty. The University of Michigan Consumer Sentiment Index for May fell to a record low of 44.8 from 48.2 previously and compared to economists’ forecasts for 48.2. The expectations index also fell to a record low of 44.1.
UMich’s 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 another troubling stagflationary data point confronting Kevin Warsh as he is set to take over as chairman of the Federal Reserve. President Trump appointed Warsh in the hope that he would get the central bank to cut interest rates, but the Iran war has sent oil prices skyrocketing and reignited what had cooled inflation.
Traders are now pricing in a more than 70% chance of one or more rate hikes before the end of 2026.
Warsh’s official swearing-in is set for 11 A.M.
US stocks, meanwhile, are showing modest gains ahead of the three-day weekend. The Nasdaq is higher by 0.3% and the S&P 500 by 0.4%.
