The Fed’s preferred inflation gauge accelerated from the prior reading, reinforcing expectations that interest-rate easing may be delayed.
US PCE inflation rose to 5.1% from 4.6%, signaling that the Federal Reserve’s preferred inflation measure is moving higher rather than cooling. The hotter reading undermines expectations for near-term interest-rate cuts, a key macro driver for risk assets including crypto, because stickier inflation can keep borrowing costs elevated for longer.