US PCE Inflation Data Release Sparks Market Attention
- The US Bureau of Economic Analysis will release the December US PCE inflation report on February 20.
- JPMorgan forecasts a month-over-month (MoM) core PCE inflation of 0.37%, raising the annual rate to 2.9%.
- Bank of America and others predict core PCE inflation between 0.39%-0.40% MoM, with an annual rate of around 3%.
- Current market conditions show Bitcoin trading above $67K, despite recent volatility and low trading volume.
- The CME FedWatch Tool indicates a nearly even chance (48%) for a Fed rate cut in June, with expectations for cuts later in the year.
As investors await the US PCE inflation data, there is heightened market uncertainty affecting assets like Bitcoin and gold, which are currently trading lower. The anticipated rise in core PCE inflation could lead to the Federal Reserve maintaining interest rates at current levels through March.
With JPMorgan’s prediction of a core PCE increase to an annual rate of 2.9%, market participants are closely monitoring these developments as they may influence future monetary policy decisions by the Fed.
