#PCEMarketWatch #PCEMarketWatch

✍️ What is the PCE Index?

The Personal Consumption Expenditures (PCE) Index is a closely monitored measure by the U.S. Federal Reserve for measuring inflation. It reflects changes in the prices of goods and services consumed by individuals.

- Latest figures (May 2025):

PCE 2.7% annual

(Excluding food and energy - Core PCE):

Overall PCE: 2.9%

The numbers came in slightly higher than expectations, increasing anticipation about the upcoming interest rate policy.

- Market reaction:

- Stocks: Experienced volatility due to concerns about the Fed continuing its monetary tightening.

- Dollar: Increased slightly after the data release.

- Gold and cryptocurrencies: Came under some pressure due to high interest rate expectations.

- What does this mean for the future?

The data shows that inflation is still above the Fed's target (2%), keeping the door open for maintaining high interest rates for a longer period.

✍️ Inflation is not defeated yet, and the Fed may prefer caution in its upcoming decisions. Investors are awaiting Powell's upcoming statements as a key to understanding the direction.