The US Bureau of Economic Analysis reported that the core PCE price index rose 0.2% m/m in August, bringing the annual rate to 3.0%, down from prior revised levels and below consensus expectations of 3.3%. Headline PCE increased 0.3% m/m for a 3.4% y/y reading. Real consumer spending jumped 0.6% m/m, marking the strongest gain in over a year. New York Fed President Williams noted there is no urgency for an October rate hike, pushing implied odds down to around 50%.
What it moves
BTC, ETH, SOL, XRP, DOGE, para:BTCD, mkts:US500, mkts:USTECH
Bull vs bear
Bulls read the softer inflation and strong real spending as confirmation that the Fed can comfortably cut rates without overheating the economy, supporting risk assets and crypto leverage. Bears argue the resilient consumer spending keeps core pressures sticky, limiting the pace of future easing and capping upside for high-beta names.