thenewscrypto.com
- After cooling to 2.6% in May, the US PCE inflation rate dropped to 2.5% in June.
- At its meeting in July, the central bank is expected to maintain the interest rate constant.
The crypto community was anticipating today’s Core PCE inflation report with much anticipation. Inflation dipped to 2.5% in June from 2.6% in May, as reported most recently. Importantly, it has also been consistent with what the market was expecting, while June’s core inflation rate was flat.
After cooling to 2.6% in May, the US PCE inflation rate dropped to 2.5% in June, according to newly published statistics from the Commerce Department. The market was expecting a comparable inflation number for June, which is worth noting.
The figures for Personal Consumption Expenditure (PCE) remained steady in May. But when adjusted for month-on-month variations, it came in at 0.1%. Inflation stayed at 2.6% in June, according to the Core PCE Index, which was higher than the market forecast of 2.5%. Compared to the previous month, the Core PCE index shows an increase of 0.2% on a month-over-month (MoM) basis.
All Eyes on Fed
The present market performance of the cryptocurrency market suggests that investors have responded favorably to the lowering of inflation statistics. Nevertheless, the contradictory data seems to have intensified speculation over the Federal Reserve’s expected next step with its policy rate plans.
After a week of wildly fluctuating prices, the cryptocurrency market recovered and surged by almost 4% today. Market sentiment, which was already elevated today over excitement around the Bitcoin Conference 2024, seems to have been further bolstered by the most recent mixed inflation statistics.
Nevertheless, the Core PCE statistic and the drop in the MoM have stoked debate over the Fed’s position on their intentions to decrease interest rates. At its meeting in July, the central bank is expected to maintain the interest rate constant, according to the experts.