#PCEInflationWatch

Inflation rebounds! The Federal Reserve is caught in a dilemma, market logic changes

📉**Federal Reserve Decision**: Core PCE rebounds to 2.5%, further from the 2% target, "higher for longer" interest rate policy strengthens, probability of rate cuts in June plummets, and the dollar index may rise again.

📊**Market Impact**:

1️⃣ **U.S. Stocks**: High interest rates suppress valuations, but the earnings resilience of AI giants may support the Nasdaq's base, cyclical stocks under pressure;

2️⃣ **Bitcoin**: Short-term suppressed by a strong dollar, but stagflation expectations + geopolitical risks in an election year will stimulate demand for crypto assets as a hedge, buying opportunity upon pullback;

3️⃣ **Gold/U.S. Treasuries**: Real interest rates suppress gold, but the steepening yield curve of U.S. Treasuries suggests recession concerns.

🔥**Key Variables**: If March CPI data exceeds expectations again, the market may trade on "second inflation," and the volatility of risk assets may soar!