📊 #USCorePCEMay – What It Means for Crypto and Markets
The Core PCE report for May 2025 just came out — and it shows that inflation is still a bit high, which could affect when the Fed lowers interest rates.
🔍 What is Core PCE?
Core PCE (Personal Consumption Expenditures) is how the U.S. government tracks price increases without counting food and energy.
👉 The Fed watches this number closely to decide when to cut or raise interest rates.
📈 What Did the Report Say?
Core PCE rose 2.7% over the last 12 months (higher than April’s 2.6%).
Month-over-month, it went up 0.2% (also higher than expected).
Headline PCE (including food & energy) rose 2.3% YoY and 0.1% MoM.
💡 This means prices are still going up more than the Fed wants.
💸 Spending and Income Falling
Consumer spending dropped by 0.1% (first drop in months).
Personal income also fell by 0.4% — that’s a big deal.
📉 This shows that people are spending less, which can slow the economy.
💬 Why It Matters
1. The Fed wants inflation at 2% — but it’s still above target.
2. If inflation stays high, the Fed might delay interest rate cuts.
3. Slower spending = signs the economy is cooling.
📉 If things slow down too much, it could lead to a recession. That might make the Fed cut rates sooner — but only if inflation cools down too.
📊 Market Reactions
Stocks stayed strong (S&P 500 & Nasdaq near all-time highs).
Bonds and dollar slightly down.
Crypto is calm for now, but watch for volatility if new Fed news drops.
💡 What Should Crypto Traders Do?
If the Fed cuts rates later this year, it could boost Bitcoin and altcoins.
But if inflation stays sticky, volatility may return.
Keep an eye on July’s CPI and job reports — they will shape what happens next.
🧠 TL;DR: ✅ Inflation still high
📉 People are spending less
🕒 Fed might wait longer to cut rates
📈 Crypto could benefit later this year if things cool down
📣 What are you doing with your crypto now?
💰 Buying the dip or waiting for more signals?
Let’s talk 👇
