Core PCE, which is one of the data that the US Federal Reserve (Fed) pays the most attention to determine the level of inflation, was announced. In August, core personal consumption expenditures (PCE) increased by 2.2% yoy. The expectation was 2.3%. The monthly increase was 0.1%, while the expectation was 0.2%.

Could there be more cuts?

Core PCE, which excludes energy and food prices, is generally known for providing a more stable and realistic inflation trajectory. Energy and food prices, which are very quickly affected by geopolitical developments, can cause inflation to be extremely volatile both up and down. Therefore, core PCE can offer a more ‘realistic’ perspective.

A lower-than-expected core PCE may mean that inflation pressures in the US have fallen further. This may cause the Fed to act more comfortably in interest rate cuts in the coming months. Thus, further increases in risky assets such as Bitcoin can be seen.

Increase in Bitcoin

After the announcement of the core PCE data, the rise in Bitcoin continued. The largest cryptocurrency rose to $65,960 and touched the $66,000.