#USCorePCEMay latest on the U.S. Core PCE for May and its ripple effects, especially across macro and crypto markets:
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📊 U.S. Core PCE – May 2025
Monthly change (Core PCE): +0.2% (vs. +0.1% expected)
Year-over-year: +2.7% (up from +2.2‑2.6%)
Headline PCE: +0.1% monthly, +2.3% YoY
This hotter-than-expected core print is the highest since February and indicates stickier underlying inflation—a signal that might delay rate cuts by the Federal Reserve .
#USCorePCEMay Economic & Market Implications
1. **Federal Reserve trajectory:**
Elevated core inflation pressures the Fed to keep rates higher for longer—pushing potential cuts to September 2025 or later .
2. Consumer behavior:
Personal income dropped 0.4%, spending fell 0.1%, hinting at underlying economic weakness even amid inflation .
3. **Equities & Treasury yields:**
S&P 500 and Nasdaq reached record highs, buoyed by the inflation data and trade/tariff optimism .
U.S. Treasury yields softened slightly as spending data suggested cooling demand
4. Forex stance:
The U.S. dollar softened, giving the euro a boost. EUR/USD recently climbed near 1.1750+, with Core PCE now the key driver .