#USCorePCEMay Inflation Data Signals Fed's Next Move
The May U.S. Core PCE (Personal Consumption Expenditures) report is a critical gauge the Fed watches closely to steer its monetary policy. While the headline numbers show inflation is cooling slightly, it's still above the Fed's comfort zone.
💡 Key Takeaways:
📉 Core PCE YoY: Eased slightly, suggesting disinflation continues, but at a gradual pace.
🧊 Consumer spending: Softened, hinting at cooling demand.
🏦 What’s next for the Fed? Traders are now split on whether the first rate cut will come in September or later.
⚠️ Market Reaction:
📉 Bitcoin and equities dipped slightly post-release.
💵 Dollar strength remains a headwind for risk assets.
📈 Bonds rallied, pricing in hopes of eventual easing.
This data could reshape the Fed’s tone in the upcoming FOMC meetings. For now, patience is key, and eyes remain on future CPI and jobs data.
📌 What does it mean for crypto? Lower inflation could eventually bring back bullish momentum but it’s not a green light just yet. Smart investors are watching, not chasing.