The U.S. Department of Commerce's Bureau of Economic Analysis reported a 0.3% increase in the core Personal Consumption Expenditures (PCE) Price Index for July, aligning with economists' forecasts. This index, which excludes food and energy prices, is crucial for the Federal Reserve's inflation assessment. The year-over-year rise was 2.9%, indicating ongoing but moderating inflationary pressures.
These figures suggest a stable economic environment, potentially influencing the Federal Reserve to maintain its data-dependent approach and consider pausing interest rate hikes. This stability may benefit riskier assets like Bitcoin and Ethereum, as investors focus on market-specific factors. The core PCE data highlights the continued effort towards the Fed's 2% inflation target, affecting investor sentiment and purchasing power.
July Core PCE Rises 0.3%, Meets Expectations, Influences Fed Policy
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