#PCEInflationWatch

The US Personal Consumption Expenditures (PCE) Price Index rose 0.3% in August, matching economists' expectations. This brings the annual inflation rate to 2.7%, up from 2.6% in July. Core PCE inflation, excluding volatile food and energy prices, remained steady at 2.9% year-over-year.

*Key Takeaways:*

- *Inflation Rate*: 2.7% annual increase in PCE, 2.9% in core PCE

- *Monthly Change*: PCE up 0.3%, core PCE up 0.2%

- *Fed's Outlook*: Inflation remains above the 2% target, potentially impacting rate cuts

- *Market Reaction*: Stocks rose, with S&P 500 E-mini futures up 17 points or 0.26%[¹](https://www.reuters.com/business/view-us-pce-matches-expectations-august-2025-09-26/)

*Expert Insights:*

- Peter Cardillo, Chief Market Economist at Spartan Capital Securities, notes that inflation is "sticky" but not accelerating, which could support at least one more Fed rate cut this year.

- Gennadiy Goldberg, Head of US Rates Strategy at TD Securities, believes the data supports one more rate cut, with two cuts being a possibility.

- Douglas Beath, Global Equity Strategist at Wells Fargo Investment Institute, expects some upside in inflation gauges over the next few months due to trade disruptions.

*Cryptocurrency Impact:*

The PCE data may influence cryptocurrency markets, particularly Bitcoin and Ethereum, as investors assess potential Fed rate cuts and their impact on market sentiment. Some analysts predict a potential pump in altcoins followed by a major crash, citing historical patterns after Fed rate cuts.