📊 #USCorePCEMay | Core Personal Consumption Expenditures Index Report - May
📊 #USCorePCEMay | Core Personal Consumption Expenditures Index Report - May
🔔 Release Date: June 28, 2025
🏛️ Publisher: US Department of Commerce - Bureau of Economic Analysis (BEA)
📉 Actual figure: +2.6% year-on-year
📈 Expectations: +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 preferred measure for the US Federal Reserve to gauge the real inflation rate, as it excludes volatile items such as food and energy prices.
If the figure comes in lower than expected → interpreted as a sign of slowing inflation → positive impact on the markets
If it comes in higher than expected → means higher inflationary pressure → negative impact on high-risk assets like cryptocurrencies
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🧠 Market Reading for May Report:
✅ The figure came in line with expectations (+2.6%)
📉 A slight decline from the April reading (+2.8%)
💡 This data strengthens bets on a potential rate cut in the third quarter of 2025
📉 The US Dollar Index DXY dipped slightly after the announcement
📈 Bitcoin and Ethereum recorded an immediate rise of 1.2% and 1.5% respectively
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🏦 What does this mean for Fed policy?
Although inflation remains above the target (2%), the ongoing slowdown gives the Federal Reserve more room to lower interest rates.
Markets expect at least one cut in September or November 2025
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📌 Direct impact on the cryptocurrency market:
Improved risk appetite → Increased demand for digital assets
Stablecoins maintained their stability, with an increase in liquidity on USDT and USDC
Trading volume on futures rose by +9% within an hour of the report's release
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🔍 Insights from Binance Research:
> "The continued slowdown in Core PCE means less pressure on the Fed, which enhances the likelihood of starting a monetary easing cycle. This could support an upcoming bull run in the crypto market if economic indicators continue to decline gradually."
