📊 Understanding the PCE and Its Market Impact!
If you're investing in crypto or traditional markets, you must track the PCE (Personal Consumption Expenditures Price Index) — the Federal Reserve’s preferred inflation gauge.
🧠 The chart clearly shows how inflation spiked in 2022 and has been slowing down since. However, it's not fully under control yet. This plays a key role in shaping the Fed's next interest rate decisions.
📉 When the PCE rises, the Fed tends to maintain or increase interest rates. A drop, on the other hand, opens the door for rate cuts — a bullish signal for risk assets like crypto.
⚠️ Keep an eye on upcoming PCE releases — surprises often trigger volatility across the markets.
🟡 Chart source: BLS – Bureau of Labor Statistics
📆 Data up to 2025
