Evening digest: US eases shipping rules, Bitcoin slips below $72K
Key Takeaways
- Federal Reserve held policy rates at current levels.
- US wholesale inflation surged.
- Trump administration granted waiver for foreign vessels moving fuel between U.S. ports amid Iran conflict.
Fed policy stance
The US Federal Reserve left policy rates unchanged, maintaining a cautious stance as it weighs the economic impact of the Middle East conflict and mixed domestic data.
“Evening digest: US eases shipping rules, Bitcoin slips below $72K On Wednesday, the Federal Reserve held the policy rates, while the US wholesale inflation surged”
The Federal Open Market Committee voted 11-1 to hold the benchmark rate in a range of 3.5% to 3.75%, with Governor Stephen Miran dissenting in favor of a rate cut.
Fed Chair Jerome Powell warned that near-term inflation risks have risen, tied to higher energy costs from the Middle East disruption.
He said near-term inflation expectations have risen in recent weeks, likely reflecting the substantial rise in oil prices caused by the supply disruptions in the Middle East.
The Fed also stressed uncertainty around geopolitical developments, noting that the implications of Middle East developments for the US economy are uncertain and that the committee is attentive to risks to both sides of its dual mandate.
Policymakers maintained their projection of one rate cut in 2026 and another in 2027, while avoiding any signal toward rate hikes this year.
Changes in labor-market language suggested unemployment has been little changed in recent months.
PPI inflation uptick
Fresh data added to the Fed’s challenge as US wholesale inflation rose more than expected in February.
The Producer Price Index (PPI) increased 0.7% month-on-month, well above forecasts of 0.3%, while the annual PPI climbed to 3.4%, its highest level in a year.
Core PPI, which excludes food and energy, rose 0.5% on the month and 3.9% year-on-year.
The rise was driven largely by higher services costs, which rose 0.5%, including a 1% jump in portfolio management fees and a 4.2% increase in prices for securities brokerage and investment advisory services.
Jones Act waiver impact
To address rising energy prices and supply disruptions linked to the Iran conflict, the Trump administration announced a 60-day waiver of the Jones Act, allowing foreign-flagged vessels to transport fuel and other goods between US ports.
“Evening digest: US eases shipping rules, Bitcoin slips below $72K On Wednesday, the Federal Reserve held the policy rates, while the US wholesale inflation surged”
The move aims to ease logistical constraints and stabilize fuel supplies, though critics warn it could undermine US maritime jobs.
White House spokeswoman Karoline Leavitt described the measure as another step to mitigate short-term disruptions to the oil market as the US military continues meeting the objectives of Operation Epic Fury.
Analysts cautioned that the impact on fuel prices may be limited.
The Strait of Hormuz remains a central concern, handling roughly a fifth of global oil and liquefied natural gas flows.
Bitcoin price and trends
Bitcoin came under pressure, falling 4.8% to around $71,070 amid a broader market selloff following the inflation data.
Market volatility has been driven by a combination of macroeconomic uncertainty, rising oil prices, and geopolitical tensions linked to the Iran conflict.
Technical indicators suggest Bitcoin remains in a short-term uptrend, supported by key moving averages, though traders are watching critical support levels between $70,250 and $71,275.
On-chain data show increased profit-taking, with over 48,000 BTC moved to exchanges as prices approached $75,000.
At the same time, bid absorption during recent declines indicates continued demand at lower levels, raising the possibility of near-term stabilization.
