While Bitcoin (BTC) has made a big breakthrough in recent days and is trying new ATHs, the US Presidential elections and the FED's November interest rate decision are eagerly awaited and closely followed by investors.
While the FED is expected to make a 25 basis point cut in September, data on Personal Consumption Expenditures (PCE), which the FED closely follows when making interest rate decisions and is considered a leading inflation indicator, was announced.
Accordingly, personal consumption expenditures data for September were as follows:
Core Personal Consumption Expenditure Price Index (YoY) Announced 2.7% – Expected 2.6% – Previous 2.7%
Core Personal Consumption Expenditure Price Index (Monthly) Announced 0.3% – Expected 0.3% – Previous 0.1%
Personal Consumption Expenditure Price Index (Annual) Announced 2.1%– Expected 2.1%– Previous 2.2%
Personal Consumption Expenditure Price Index (Monthly) Announced 0.2% – Expected 0.2% – Previous 0.1%
What Was Bitcoin (BTC)'s First Reaction?
Interest Rate Cut Expectations Continue!
After the Fed made its first rate cut in September and began a series of 50 basis point cuts, all eyes turned to the November meeting. While experts expect the Fed to make one or two rate cuts by the end of 2024, according to CME FedWatch, a 25 basis point cut by the Fed on November 7 is priced in at 96.1%, while holding rates steady is priced in at 3.9%.
*This is not investment advice.