Summary in one sentence: PCE exceeds expectations, rate cut in September is in jeopardy!

To explain plainly:

1. When the data heats up, the Federal Reserve becomes even more cautious

If inflation cannot be controlled, cutting rates means adding fuel to the fire for the market; the Federal Reserve is afraid of potential issues and dares not act rashly.

2. CME futures market expectations have been directly downgraded

At the beginning of the month, over 60% were betting on a rate cut in September, now at most only half still believe that. The market has started to 'do subtraction'.

3. There is division within the Federal Reserve

Some believe that a cut can be made, while others insist on saying 'we need to wait and see'; the mainstream voice remains — stabilize, don’t rush to ease.

4. This is a slightly bearish signal for the cryptocurrency market

Because the market was originally hoping for a rate cut to boost liquidity, now this tap may be temporarily turned off, which could suppress rebounds in altcoins.

But there are still opportunities:

If inflation and employment data in August weaken, market expectations may reverse, and the Federal Reserve might reconsider.

Powell has hinted: he didn’t completely rule it out, just stated 'we need more time to confirm' — indicating it’s not entirely negated.

With the June PCE data heating up, the prospect of a rate cut in September is basically discounted; those hoping to rely on easing for another surge should not be too optimistic, as we are now in the stage of 'waiting for the next set of data to see the outcome'.