#USCorePCEMay 🔔

📊 #USCorePCEMay | Core Personal Consumption Expenditures (PCE) Price Index Report - May

Release Date: June 28, 2025

🏛️ Publisher: U.S. Department of Commerce - Bureau of Economic Analysis (BEA)

📉 Actual Figure: +2.6% year-over-year

📈 Forecast: +2.6%

📊 Previous Figure (April): +2.8%

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❓ What is the Core PCE Index?

Core PCE or Core Personal Consumption Expenditures is the Federal Reserve's preferred measure of true inflation, as it excludes volatile items such as food and energy prices.

If the number comes in lower than expected → interpreted as a sign of slowing inflation → positive impact on markets

If it comes in higher than expected → indicates higher inflationary pressure → negative impact on high-risk assets like cryptocurrencies

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🧠 Market Reading for the May Report:

✅ The number came in as expected (+2.6%)

📉 Slight decline from the April reading (+2.8%)

💡 This data supports bets on a potential interest rate cut in the third quarter of 2025

📉 The U.S. Dollar Index (DXY) declined slightly after the announcement

📈 Bitcoin and Ethereum recorded an immediate increase of 1.2% and 1.5% respectively

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🏦 What does this mean for Fed policy?

Although inflation is still above the target (2%), the ongoing slowdown gives the Federal Reserve more room to cut interest rates.

Markets expect at least one cut in September or November 2025