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 economic 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 ahead of economists’ forecasts of 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 five-year inflation rate rose from 3.4% to 3.9%.
It’s another disturbing stagflationary figure facing Kevin Warsh as he prepares to take over as chairman of the Federal Reserve. President Trump appointed Warsh in hopes that he would lead the central bank to cut interest rates, but the Iran war has sent oil prices soaring and reignited what had been cooling inflation.
Rates traders are now pricing in a more than 70% chance of one or more rate hikes by the end of 2026.
Warsh’s official swearing-in is scheduled for 11 a.m. ET.
Meanwhile, U.S. stocks are posting modest gains ahead of the three-day weekend. The Nasdaq rose 0.3% and the S&P 500 rose 0.4%.
