Bitcoin, the leading cryptocurrency, continues to trade around the critical $80,000 level following yesterday’s Federal Reserve interest rate decision, while data on Personal Consumption Expenditures (PCE), closely monitored by the Fed when making interest rate decisions and considered a leading indicator of inflation, was released.
As is known, the Fed kept its policy interest rate stable at 3.75-4 percent in October, while two members expressed their opinion in favor of a 25 basis point interest rate increase. Following the decision, Fed Chairman Kevin Warsh stated that inflation is still running above the 2 percent target level.
Accordingly, the personal consumption expenditure data for September were as follows:
Core Personal Consumption Expenditures Price Index (Annual) Announced 3.1% – Expected 3.1% – Previous 3.0%
Core Personal Consumption Expenditures Price Index (Monthly) Announced 0.3% – Expected 0.3% – Previous 0.3%
Personal Consumption Expenditures Price Index (Annual) Announced 3.6% – Expected 3.6% – Previous 3.4%
Personal Consumption Expenditures Price Index (Monthly) Announced 0.5% – Expected 0.5% – Previous 0.3%
According to The Kobeissi Letter, US September PCE inflation, the Fed’s preferred measure of inflation, rose to 3.6%. Core PCE inflation also increased to 3.1%, a 0.3% increase compared to the previous month. This officially confirms that CPI, PPI, and PCE inflations are all rising again. The report suggests that, based on these data, a rate hike is imminent in December.
What was Bitcoin’s (BTC) Initial Reaction?
*This is not investment advice.
