#PCEInflationWatch : Sticky at 2.9% 🚨

The Fed’s favorite inflation gauge, Core PCE, just came in at 2.9% Y/Y for August — exactly as expected, but still well above the 2% target.

📊 Key Takeaways:

Core PCE: 2.9% (unchanged from July)

Headline PCE: 2.7% (slightly higher)

Fed just cut rates last week, but this data reminds us: the “last mile” of disinflation is the hardest.

🔥 Why It Matters:

Inflation is sticky → limits how aggressively the Fed can cut rates.

Labor market is cooling fast → pressure is on the Fed to keep easing anyway.

Net effect: we’re entering a messy policy tug-of-war.

💡 What This Means for Crypto:

🟠 Less Liquidity Tailwind → sticky inflation = slower cuts = less fuel for risk assets.

💵 Stronger Dollar Risk → higher-for-longer rates could support the USD, weighing on $BTC /$ETH

📉 Risk Sentiment Dampened → crypto trades as a risk-on asset, so macro uncertainty = choppier price action.

Bottom line: This PCE print isn’t a disaster — but it’s not the green light crypto bulls were hoping for either.

#MarketPullback