📊 Inflation Rises Again — PCE Update
The PCE Price Index, the Fed’s preferred inflation gauge, showed prices climbing 2.7% year-over-year in August, slightly higher than July’s 2.6%. Core PCE, which excludes food and energy, held steady at 2.9%. On a monthly basis, headline prices rose 0.3%, while core increased 0.2%. The numbers came in line with expectations, suggesting inflation is still sticky but not alarming enough to trigger an immediate Fed shift. 📈📉
💱 Impact on Crypto
For the crypto market, this update sends mixed signals. On one hand, the steady pace of inflation keeps rate cut hopes alive, which could increase liquidity and support risk assets like Bitcoin and altcoins. On the other hand, short-term caution remains, and prices may swing as traders digest the data. Over the medium term, if inflation trends lower, it could fuel a stronger rebound in crypto markets. 🚀💹.
👉 In short, inflation is still sticky but manageable. For crypto, this means no major setback from the Fed yet — leaving room for cautious optimism.
