#PCEMarketWatch Inflation falls slightly, but the Fed is still 'listening'
🔍 Summary of events:
• Both the overall PCE index and the Core PCE increased by 0.1% compared to the previous month.
• Core inflation (excluding food and energy) – generally considered the 'cleanest' indicator – also met market expectations.
• This rate of increase shows that inflation is slowing down, but... it's not over yet.
📉 Annual inflation: 2.1%
• The level of 2.1% is still slightly above the Fed's 2% target, but it's not a significant discrepancy.
• This reinforces the narrative that 'inflation reduction is underway' – but close monitoring is still necessary.
💼 Immediate impact:
• Stocks: may have a slight recovery, as there are no shocking data.
• Bonds: yields may remain stable, awaiting clearer signals from the Fed.
• USD Dollar: possibility of narrow fluctuation, depending on interest rate expectations.
• Crypto & gold: may rise slightly due to hopes that the Fed will become less 'hawkish' in the future.
⚠️ But remember:
Although the PCE is an important indicator, it does not fully determine the Fed's actions. There are still many pieces of the puzzle that are unclear:
• Labor market
• Consumer spending
• May NFP and CPI report
🎯 Summary:
• PCE cooling = Slightly positive signal, but still not convincing.
• The Fed will keep interest rates stable in the short term unless other data clearly agrees.
• Traders should 'fasten their seatbelts' and wait for more reports – especially next week’s NFP which could be a turning point.
Do you think the Fed will cut interest rates at the June meeting? Comment below.
#DolugCrypto #FedWatch