#PCEMarketWatch

✍️ What is the PCE Index?

The Personal Consumption Expenditures (PCE) Index is a closely monitored measure by the U.S. Federal Reserve to gauge inflation. It reflects changes in the prices of goods and services consumed by individuals.

- Latest figures (May 2025):

PCE 2.7% annual

(excluding food and energy - Core PCE):

Overall PCE: 2.9%

The figures came in slightly above expectations, increasing anticipation regarding the upcoming interest rate policy.

- Market Reaction:

- Stocks: Experienced volatility due to concerns about the Fed's continued monetary tightening.

- Dollar: Rose slightly after the data was released.

- Gold and cryptocurrencies: Came under some pressure due to expectations of high interest rates.

- What does this mean for the future?

The data shows that inflation is still above the Fed's target (2%), keeping the door open for maintaining high interest rates for a longer period.

✍️ Inflation has not been defeated yet, and the Fed may prefer caution in its upcoming decisions. Investors are awaiting Powell's upcoming statements as a key to understanding the trend.

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