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    US consumer spending solid; inflation showing progress as year ends

    WASHINGTON (Reuters) -U.S. consumer spending increased in November amid strong demand for a range of goods and services, underscoring the economy’s resilience, which saw the Federal Reserve this week projecting fewer interest rate cuts in 2025 than it had in September.There was also good news on inflation last month after a series of warmer readings. The report from the Commerce Department on Friday showed moderate monthly rises in prices, with a measure of underlying inflation posting its smallest gain in six months. Nonetheless, the annual increase in core inflation, excluding food and energy, remained stubbornly well above the U.S. central bank’s 2% target. There are also worries that plans by President-elect Donald Trump’s incoming administration to cut taxes, impose or raise tariffs on imports and deport millions of undocumented immigrants would stoke inflation.”The economy continues to grow from strong consumer demand as income growth and the wealth effect from higher portfolio values give consumers capacity to spend,” said Jeffrey Roach, chief economist at LPL Financial (NASDAQ:LPLA). “Inflation was more benign than expected but the stickiness of some categories supports the Fed’s hesitancy to materially lower rates next year.” Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.4% last month after a downwardly revised 0.3% gain in October, the Commerce Department’s Bureau of Economic Analysis said.Economists polled by Reuters had forecast consumer spending advancing 0.5% after a previously reported 0.4% rise in October.The nearly broad-based increase in spending was led by new motor vehicles, likely in part as households replaced vehicles damaged during Hurricanes Helene and Milton. That accounted for the bulk of the 0.8% rebound in goods outlays. Spending on recreational goods and vehicles also rose as did outlays on financial services and insurance, mostly charges, fees and commissions. There was also increased spending on recreation services, healthcare, clothing and footwear, furniture as well as housing and utilities. Spending at restaurants and bars as well as on hotel and motel stays also increased. Spending on services rose 0.2%. When adjusted for inflation, consumer spending rose 0.3% after edging up 0.1% in October. The so-called real consumer spending is running at an annualized rate of 3.1% in the first two months of the fourth quarter. “That will lay the foundation for another very solid GDP number for the fourth quarter,” said Lou Crandall, chief economist at Wrightson ICAP (LON:NXGN).Consumer spending surged at a 3.7% pace in the third quarter, the fastest in 1-1/2 years, helping to propel the economy to a 3.1% growth rate following a 3.0% pace of expansion in the April-June quarter.The Atlanta Fed is forecasting gross domestic product increasing at a 3.1% rate in the fourth quarter.Fed Chair Jerome Powell on Wednesday described the economy as having “just been remarkable,” adding “I feel very good about … the performance of the economy and we want to keep that going.” The central bank on Wednesday cut its benchmark overnight interest rate by 25 basis points to the 4.25%-4.50% range. It forecast only two rate reductions in 2025, in a nod to the economy’s continued resilience and still-high inflation.In September, Fed officials had forecast four quarter-point rate cuts next year. The shallower rate cut path in the latest projections also reflected uncertainty over policies from the incoming Trump administration. Stocks on Wall Street traded higher. The dollar slipped against a basket of currencies. U.S. Treasury yields fell.STRONG WAGE GAINSLabor market stamina, marked by low layoffs and strong wage growth, is underpinning consumer spending. Strong household balance sheets, reflecting high stock market and home prices are also driving spending. Household savings remain supportive. Economists, however, cautioned that it was mostly middle- and higher-income households that were benefiting from the wage gains and wealth effects, noting that lower-income consumers were under financial pressure.Personal income rose 0.3%, with wages shooting up 0.6%. Income at the disposal of households after accounting for inflation rose 0.2%, meaning some tapped their savings to fund purchases. The saving rate dipped to 4.4% from 4.5% in October.Economists did not believe that the moderation in inflation last month would have changed the tone of the Fed’s message on Wednesday. The personal consumption expenditures (PCE) price index rose 0.1% after an unrevised 0.2% gain in October.Goods prices were unchanged after three straight monthly decreases. Motor vehicle prices increased 0.7%, but the cost of recreational goods and vehicles fell for the fourth consecutive month. Services prices rose 0.2% after gaining 0.4% in October.Housing inflation increased at the slowest pace since April 2021, reflecting a moderation in rents. The cost of food and accommodation services rose by the most in 10 months. In the 12 months through November, the PCE price index advanced 2.4% after rising 2.3% in October. The increase in the annual inflation rate was partly due to last year’s low readings dropping out of the calculation.Excluding the volatile food and energy components, the PCE price index climbed 0.1%. That was the smallest rise since May, and followed an unrevised 0.3% gain in October. Core inflation was running at a 2.5% rate in the last three months.In the 12 months through November, core prices increased 2.8% after advancing by the same margin in October. The Fed tracks the PCE price measures for monetary policy. It hiked its policy rate by 5.25 percentage points between March 2022 and July 2023.”The general disinflation trend, in view of the much higher U.S. dollar, is intact for the next two months,” said Brian Bethune, an economics professor at Boston College. “However, if the incoming administration raises tariffs significantly, that will provoke retaliation and usher in a period of stagflation that will rival the stagflation of the 1970s.” More

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    Jim Cramer Says ‘Buy Fear, Not Sell It,’ Crypto Community Reacts

    It is expected to be caused by the newly elected U.S. president disapproving the funding bill for the year 2025, which includes pay rises and multiple benefits for congressmen from the Democratic party. Tech magnate and head of D.O.G.E. Elon Musk also paid attention to that bill, speaking against it on X.Jim Cramer tweeted that he had studied every governmental shutdown “since the time of Bill Clinton” regarding the way to react best to it investment-wise. Therefore, Cramer said, “You always had to BUY the fear not sell it.”Now that Cramer has tweeted about “buying the fear” and not selling it, many commentators, including cryptocurrency fans, began tweeting that it is definitely worth selling, not buying.Over the last 24 hours, the world’s largest cryptocurrency, Bitcoin, has shed a large part of its gains added over the last month. Bitcoin declined by almost 10%, falling from the $102,450 zone and landing at $92,951. By now, BTC has rebounded a little and is changing hands at $95,200. The key reason for the rapid and deep Bitcoin decline was the recent statement by Federal Reserve boss Jerome Powell about the Fed planning to reduce the high pace of interest rate cutting next year. Rather than the 100-basis-point cut expected by the crypto community, the Fed plans to do a 25-basis-point cut in early 2025.This article was originally published on U.Today More

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    Bitcoin (BTC) Hourly Death Cross Emerges: Details

    The bearish signal comes amid a broader market sell-off, which has led to $1.42 billion in crypto liquidations over the past 24 hours, per CoinGlass data. Bitcoin has not been immune to this bearishness, with its price falling as traders faced uncertainty.Bitcoin fell by more than 11% from a record high of $108,268 achieved earlier this week, on Dec. 17, as lesser prospects for looser U.S. monetary policy dampened speculative fervor.In the most recent data release on Friday, the personal consumption expenditures price index, the Fed’s favored inflation indicator, showed a 0.1% increase from October and an annual rate of 2.4%, both lower than expected.The data comes just two days after the Fed dropped its benchmark interest rate by a quarter percentage point to a target range of 4.25%-4.5%, the lowest level in two years. During his news conference, Fed Chair Jerome Powell struck a hawkish tone about the forecast for next year. Fed policymakers raised their inflation outlook and projected only two rate cuts in 2025, down from four previously predicted.With fewer Fed rate cuts projected in 2025, some investors may decide to reduce their exposure and take profits, hence the sell-off.While death crosses are often viewed as bearish, they do not always guarantee further declines. The market is now closely monitoring Bitcoin’s support levels, with $90,000 being a critical psychological barrier to watch if selling pressure continues.On the upside, if the rebound is sustained, the $99,974 level might be critical to watch out for. If the Bitcoin price rebounds off this level with strength, the chances of retesting above the $100,000 psychological level increase. This might take Bitcoin beyond $108,000, with potential targets of $113,000 and $125,000.This article was originally published on U.Today More

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    Michael Saylor Issues Bitcoin Statement Amid Ongoing Crypto Market Turmoil

    Despite the tense atmosphere, Saylor maintains that investors must wear a hard hat as the market suffers, which could be a momentary crash.Notably, workers stay safe on a construction site by wearing a hard hat to protect themselves from crashing objects. Saylor appears to have the same advice for Bitcoin investors to protect themselves.Analysts suggest that investors could use stop-loss orders, hedge with derivatives or monitor market sentiments in a crashing market. However, the Bitcoin advocate would rather stay calm and stick to his Bitcoin accumulation plan for Saylor.When Bitcoin hit $100,700 after suffering a momentary dip, Saylor rejected the idea of selling for profit-taking in an interview. He maintained that the Bitcoin community would never trust MicroStrategy should it decide to sell BTC. This highlights Saylor’s and MicroStrategy’s holding strategy.Meanwhile, Saylor has hinted at changing MicroStrategy’s fundraising approach to add more intelligent leverage. Having achieved targets faster than anticipated, Saylor says the company will continue to raise capital primarily via fixed-income markets.He believes the company needs more leverage to compensate for its increasing deleveraged position.This article was originally published on U.Today More

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    Colombia’s central bank delivers smaller rate cut than expected

    BOGOTA (Reuters) -Colombia’s central bank on Friday cut its benchmark interest rate by 25 basis points to 9.50%, a smaller move than expected by markets, as it slowed the pace of its easing due to domestic fiscal uncertainty and decisions by its peers around the world.All 25 analysts in a recent Reuters poll said they expected the central bank’s board to deliver a 50-basis-point cut in borrowing costs. Five of the board’s seven policymakers voted for a 25-basis-point cut, one for 50 points and another for 75 points, Leonardo Villar, the board’s director, said in a press conference.”There is room to continue to lower the interest rate,” Villar told journalists, adding that the central bank is confident Colombia’s inflation will converge toward its 3% target next year.The Andean nation’s 12-month inflation rate through the end of November was 5.20%.However, the bank’s technical team expects movement towards the inflation target will be slower than it previously expected due to exchange rate pressures and how they affect prices, Villar said while presenting the board’s statement.”This reduces the room for maneuver to maintain the pace of interest rate cuts,” the statement said.The economy has grown 1.6% through September, the board added, compared to the same period in 2023, and the labor market has remained relatively stable.”Uncertainty about the situation of public finances in Colombia has generated volatility in the exchange-rate and public debt markets,” the board added.President Gustavo Petro’s leftist government has faced fiscal troubles that threaten its compliance with the country’s so-called fiscal rule, which is designed to impose limits on spending to prevent deterioration of public finances. Colombia’s Congress earlier this month rejected a $2.7 billion fiscal reform proposed by the government to finance 2025 spending.On Thursday, Colombia’s Autonomous Fiscal Rule Committee said the Andean country would need to cut spending this year by 40 trillion pesos ($9.1 billion), followed by a subsequent cut of 52 trillion pesos next year.Colombia and other emerging market nations also are keeping a wary eye on the U.S. dollar, which could be bolstered next year by potentially inflationary policies of the incoming Trump administration and a shallower Federal Reserve rate-cut path.Colombia’s central bank has cut its benchmark rate by 350 basis points since December of 2023.($1 = 4,394.50 Colombian pesos) More

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    Expert Trader Predicts When Bitcoin (BTC) Bulls ‘Will Try to Make a Stand’

    That is why it is worth paying attention to the sentiment of the most popular and established public traders in the cryptocurrency space right now. For example, in his post, DonAlt discusses that the painful drop of the Bitcoin price to almost $90,000 has led to a major liquidation of altcoins, bringing many of them back to bear market valuations. At the same time, the trader offers a vision where a price range between $85,000 and $90,000 per BTC is likely – where bullish investors might try to stabilize and push the price further, indicating a potential support zone for Bitcoin. As can be seen on the attached chart, the next major trading range, if the above is breached, will be the $85,000-$71,500 area. Interestingly enough, this is also the area where the unclosed gap for Bitcoin on the CME is located. Thus, at first glance, it is all doom and gloom. What brings enthusiasm is that the area outlined by DonAlt is almost there, so we can hope for a bullish reaction there. However, considering the year-end tendencies on the crypto market, the roller coaster ride may last for quite some time.This article was originally published on U.Today More

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    Mystery 666 BTC Transfer Leads to Half Billion Bitcoin Puzzle

    According to Whale Alert, this transfer took place from an unknown wallet under the address “3NVeX” to the address which, according to the tracking service, belongs to Antpool, which is one of the largest mining pools in the industry.Interestingly, at the same time, data from Arkham Intelligence shows that the transfer was made not to the address of the mining pool but to the custodial account of Cobo’s, which is a popular Web3 wallet platform.This address, however, was not the last stop for the Bitcoin (BTC) data, when another 17 BTC and a transfer of 683 coins was made to an unknown address, “3BHXy.” This Arkham address is also suspected to belong to Cobo, and its balance right now contains 5,435 BTC, which is equivalent to $511.53 million.Such transfers excite the crypto public because they are often associated with the sale or purchase of cryptocurrency by a major player.However, here, it is likely that this is not the case, and it is most likely just a transfer of Bitcoin from one pocket to another. Thus, it can be concluded that the only sinister thing here is the initial amount of the transfer.This article was originally published on U.Today More

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    DOGE Founder Reacts to Bitcoin, Dogecoin and Ethereum Sell-off

    The listed prices show a significant drop in BTC, DOGE and ETH. This reflects the huge bearish sentiment that has affected the coins. As a result of these sell-offs, Bitcoin ETFs have registered the largest outflows as the bears dominate the market.Despite this massive decline, Markus’s tone has a hint of humor, best described as sarcastic. Many consider the post to have a deeper meaning of preparing to take advantage of the decline in the price of the assets. Markus could be preparing to buy the dip in anticipation of a price rebound, which is likely to result in profit-taking.The Dogecoin founder’s post has elicited reactions from his followers and many users of the different coins. Some users believe the price drop is a great opportunity for investors to accumulate ahead of the next bull wave.Bitcoin crossed the psychological price level of $100,000 for the first time and soared to over $108,200. Many investors were engaged in profit-taking, particularly early traders who purchased when BTC traded below $80,000.DOGE’s price crashed by 20.49% to $0.289 within 24 hours. Dogecoin’s market volume has soared by 107.95% to $13.58 billion. Ethereum has also registered a surge in market volume by 47.64% to $75.88 billion, even with a notable price decline of 12.33% to $3,230.49.Analysts say all three coins have continued to soar in market volume, signaling investors’ confidence in the assets. These investors might be positioning themselves for future market rebounds.This article was originally published on U.Today More