Key Features: - "Monthly Change": In May, the Core PCE grew by 0.2%, which was higher than the expected 1% increase. - Annual Change: Year-over-year, the Core PCE rose 2.7%, slightly above the expected 2.6% and up from 2.6% in April.
- Consumer Spending: Fell by 0.1%, marking the first decline since January, while personal income decreased by 0.4%.
The Federal Reserve's Implications: The Fed is likely to maintain its cautious approach to monetary policy, given the persistent inflation and mixed economic signals. Markets are leaning toward September as a possible starting point for easing 1 and rate cuts in July seem unlikely. Market Reaction:
Stocks reached record highs, while Treasury yields softened amid slowdown concerns. Markets are anticipating rate cuts on September 1 due to the sticky inflation report, which makes it difficult for the Fed to cut rates early. What's Next?
The crypto world is closely watching the Federal Reserve, as the interest rate decisions can significantly impact Bitcoin and altcoins. With inflation remaining a concern, traders are advised to stay sharp and monitor major support levels for their favorite coins ².