Markets locked in PCE data that the Fed attaches great importance

The inflation indicator core PCE, which is closely followed by the Fed, will be announced today. The data is expected to be announced as 2.7 percent per year.

Markets are locked to the Core Personal Consumption Expenditure Price Index (Core PCE). This data, which measures how much consumers pay for goods and services and their spending preferences, is published by the US Department of Commerce every month.

The core PCE, also known as the inflation indicator referenced by the Fed, is expected to be announced as 2.7 percent annually. It is thought that the data may play a role in whether the Fed will make the interest rate cut in September with 25 or 50 basis points.

“The core PCE inflation was probably under control in July as prices experienced as low as 0.13 percent monthly increase,” said analysts at investment bank TD Securities, stating that the core PCE will not increase much.

The fact that the monthly or annual core PCE data is higher than expected could hit the possibility of the Fed going to an aggressive rate cut. This can negatively affect Bitcoin in the short term.

On the other hand, according to analysts, the main focus of the Fed will be on the employment data to be announced next Friday. Markets will learn the inflation data on September 11 after the employment data. The interest rate decision of the American central bank will be announced on September 18.