#PCEInflationWatch : Sticky at 2.9% 🚨
The Fed’s favorite inflation gauge, Core PCE, just came in at 2.9% Y/Y for August — exactly as expected, but still well above the 2% target.
📊 Key Takeaways:
Core PCE: 2.9% (unchanged from July)
Headline PCE: 2.7% (slightly higher)
Fed just cut rates last week, but this data reminds us: the “last mile” of disinflation is the hardest.
🔥 Why It Matters:
Inflation is sticky → limits how aggressively the Fed can cut rates.
Labor market is cooling fast → pressure is on the Fed to keep easing anyway.
Net effect: we’re entering a messy policy tug-of-war.
💡 What This Means for Crypto:
🟠 Less Liquidity Tailwind → sticky inflation = slower cuts = less fuel for risk assets.
💵 Stronger Dollar Risk → higher-for-longer rates could support the USD, weighing on $BTC /$ETH
📉 Risk Sentiment Dampened → crypto trades as a risk-on asset, so macro uncertainty = choppier price action.
Bottom line: This PCE print isn’t a disaster — but it’s not the green light crypto bulls were hoping for either.
