US Core PCE Inflation Steady at 2.9% in August
US core PCE inflation held steady at 2.9% year-on-year in August, meeting market expectations. The monthly core PCE price index rose by 0.2%, matching forecasts and revising July’s increase to 0.2%. This stable PCE index underlines persistent underlying inflation. For crypto traders, steady core PCE figures could temper expectations for further interest rate hikes by the Federal Reserve. As rate outlook cools, crypto assets may see limited volatility in the short term. In the longer term, contained inflation spreads confidence across financial markets. Traders should closely watch upcoming Fed statements and the next CPI release to gauge monetary policy shifts. Key figures: August YoY core PCE 2.9%, MoM core PCE 0.2%.
Neutral
US core PCE results matching forecasts eliminate major policy surprises. In past instances where core PCE held steady, markets saw limited directional shifts. For crypto traders, unchanged inflation reduces the chance of aggressive Fed tightening, potentially capping volatility. Short-term trading is likely to remain rangebound as no new catalysts emerge. Over the long term, stable inflation can underpin gradual market confidence, but without a significant deviation from expectations, crypto assets may not see a strong directional move. Traders should focus on upcoming Fed communications and CPI data for new triggers.