U.S. PCE Inflation Surges to 2.9% YoY, Bitcoin Declines
- U.S. PCE inflation rose to 2.9% year-over-year in December, exceeding expectations of 2.8%.
- Core PCE inflation increased to 3.0%, surpassing the forecast of 2.9%.
- Bitcoin’s price fell below $67,000 following the data release, currently trading around $66,700.
- Q4 GDP growth was reported at just 1.4%, significantly below expectations of a robust growth rate of 2.8%.
- The Fed is expected to maintain interest rates steady amid rising inflation concerns, with a projected likelihood of holding rates at the March meeting at about 96%.
The recent rise in U.S. PCE inflation indicates persistent inflationary pressures that could influence Federal Reserve policy decisions moving forward.
With Bitcoin’s price reacting negatively to these economic indicators and trading around $66,700, the market reflects uncertainty regarding future interest rate adjustments by the Fed.
