US Core PCE Inflation Slows To 3.7% But Higher MoM; Will US Fed Pivot?

The U.S. Bureau of Economic Analysis reported the personal consumption expenditures (PCE) inflation data for September today. The annual PCE inflation comes in line with market forecasts at 3.4%, after an increase to 3.5% last month. Moreover, the Federal Reserve’s preferred gauge to measure inflation annual core PCE also comes in at 3.7%, falling from 3.9% last month. However, core PCE month-over-month rises to 0.4% against the expected 0.3%, higher than 0.1% last month.

The September PCE inflation data showed that inflationary pressures continue to slowly moderate, but rates are still higher than the Fed’s target of 2%.

 Fed Chair Jerome Powell stated the Fed is proceeding carefully and further tightening of monetary policy depends upon incoming data. The PCE and CPI data indicate that inflation is cooling, but Powell is concerned about the tighter jobs market.

CoinGape Media earlier reported that Wall Street estimates are mostly in line with market consensus in response to the impact on energy prices due to the Israel-Hamas conflict. The markets will remain volatile as traders access mixed earnings results and strong US GDP growth of 4.9%.

In addition, personal spending in the U.S. rose by 0.7% from a month earlier in September 2023. It is a 0.4% increase in August and beating the market consensus of a 0.5% advance.

US stock futures rose on Friday after the market sold off for two straight sessions. Oil price is expected to fall due to easing concerns about the Middle East conflict. Moreover, the U.S. Dollar Index (DXY) remains volatile and moves near 106.52.

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Bitcoin and Crypto To Rise As PCE Inflation Slows

Bitcoin and Ethereum will continue to rise as the PCE inflation cools slowly. BTC price mostly moving sideways in low trading volumes. The 24-hour low and high are $33,762 and $34,774, respectively.

Popular trader Skew in a post on X shared that a Fed hike of 25 bps is expected by the end of the year to tame inflation and take a dovish approach.

“PCE release was basically there’s still inflationary pressure within the economy, namely services and wages respectively to labour & spending (goods & services) However trajectory is still towards lower inflation over time (YoY).”

Whereas, ETH price trades near the $1,800 level, with the price trading at $1,795. The 24-hour low and high are $1764 and $1865, respectively.

Traders remain cautious amid the end of the month as Friday’s expiry put some pressure.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.