Softening inflation data could reshape the Federal Reserve's policy path as it approaches its late-July meeting. The U.S. Consumer Price Index fell 0.4% in June, a decline that markets read as a sign of cooling price pressures across the economy. The reading is likely to reduce expectations that the central bank will raise interest rates at its upcoming gathering, giving policymakers room to hold rates steady or reconsider their tightening stance. Inflation figures remain a key input for the Fed, which has leaned on rate decisions to manage economic conditions. Lower-than-expected inflation typically supports risk assets, including cryptocurrencies, as looser monetary policy tends to boost investor appetite. Traders and analysts will closely watch how the Fed interprets the data and whether officials signal a shift in their approach at the July meeting.
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