#USCorePCEMay US Spending Gauge Slows Down!
đĨ Core PCE (Personal Consumption Expenditures) â which is the Federal Reserve's favorite inflation indicator in the United States â was somewhat weaker than expected in May.
đ Data Highlights:
đ Core PCE increased by only 0.1% (month-over-month) in May, which is lower than the forecast of 0.2%.
đ It increased by 2.6% on an annual basis, down from 2.8% in April.
đ This sluggish inflation could send a message of policy easing to the Federal Reserve. The market is now increasingly pricing in the possibility of a rate cut in September.
đĄ Insights for Traders:
đ Weak Core PCE â Increases the likelihood of the Fed reducing interest rates.
đ If interest rates are lowered â Pressure on risk assets, including stocks and crypto, may decrease and prices could rise.
đ Bitcoin and other cryptos are now in a position worth watching â reflecting the Fed's potential policy changes.