U.S. Inflation Cools in September, Boosting Rate Cut Expectations
September’s inflation data came in below expectations, raising prospects for Federal Reserve rate cuts and impacting market sentiment.
The U.S. Department of Commerce reported that September’s inflation rate was lower than expected, offering potential support for future Federal Reserve rate cuts. The core Personal Consumption Expenditures (PCE) index, which excludes food and energy, rose 0.2% month-over-month and 2.8% year-over-year—slightly below forecasts. Overall personal consumption expenditures increased by 0.3% monthly, matching expectations.
The PCE index is a primary tool for Fed policymakers, with core data often viewed as the best indicator of long-term inflation trends. The report was delayed due to a government shutdown, during which economic reporting was paused.
For crypto traders, lower-than-expected inflation may influence risk appetite and market flows, as monetary policy expectations shift. Monitoring these macro indicators can provide context for Bitcoin and broader crypto price movements.
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Insight into U.S. inflation and its potential impact on crypto markets.
Disclaimer: Not financial advice.
