Economists Anticipate Moderate July PCE Inflation Impact

Nick Timiraos reported that economists expect the July core PCE inflation rate to be 0.28%, potentially influencing Federal Reserve policy and impacting cryptocurrency markets globally.

Moderate inflation forecasts may prompt interest rate adjustments, affecting assets like Bitcoin and Ethereum as lower rates often drive increased market activity.

July PCE Inflation Forecast and Federal Reserve Impact

Economists anticipate a moderate month-over-month rise in July’s core PCE inflation, with a corresponding year-over-year increase. This follows data from CPI and PPI conversions. The overall PCE inflation is predicted to be more restrained, maintaining the same levels as previous months. This information was shared by Nick Timiraos, a reliable source for Federal Reserve insights.

Future Fed policy could be influenced by these inflation numbers, encouraging investors to speculatively anticipate possible rate adjustments. Lower interest rates may positively affect Bitcoin and Ethereum, suggesting that softer inflation numbers could lead to potential rallies. Stablecoin liquidity remains a critical factor in sustaining such movements.

“Expectations for the July core PCE inflation rate are set at 0.28% month-over-month and 2.9% year-over-year, indicating a potential shift in Fed policy.” — Nick Timiraos, Chief Economics Correspondent, The Wall Street Journal.

Bitcoin’s Market Response Amid Inflation and Liquidity Trends

Did you know? Moderate inflation expectations can stabilize cryptocurrency markets, affecting prices and liquidity trends favorably.

CoinMarketCap data shows Bitcoin (BTC) currently priced at $116,651.51 with a market cap of $2.32 trillion and dominance at 58.96%. Over 24 hours, 36.10% trading volume increased to $69.65 billion. BTC’s price changed -0.86% in the last day, despite a 10.72% growth over 90 days.

The Coincu research team suggests that the anticipation for inflation moderating aligns with past trends where crypto markets rallied on lower inflation prints. Crypto assets like BTC and ETH often benefit from increased liquidity and potential for renewed market activity following economic data signals, underlying the intertwined nature of interest rates and market dynamics.