#USCorePCEMay PCE Core of the U.S. - May 2025 Report Now Available!
In May, the U.S. core PCE rose only 0.1%, signaling a continued cooling in inflation. Year-over-year, the figure stands at 2.6%, slightly below the April reading — a sign that the Fed's tightening is working 📉
This number matters. Why?
👉 The core PCE excludes food and energy — it is the Fed's preferred measure of inflation
👉 A lower figure fuels hopes for interest rate cuts later this year
👉 Markets are already reacting: risk sentiment is returning in stocks and cryptocurrencies
🧠 What's next?
• Fed officials will now focus on labor and CPI data for confirmation
• A shift to a more dovish stance could trigger bullish breakouts in volatile assets
• Expect an increase in market positioning as traders anticipate a possible change in direction
💡 With inflation declining and resilience in the overall economy, volatility = opportunity