Fresh data from the US Bureau of Economic Analysis showed that the personal consumption expenditures price index rose 0.2% in July from the previous month and 3.7% from a year earlier. Core PCE, which strips out food and energy, also increased 0.2% on the month, leaving inflation above the Federal Reserve’s 2% target.
Nigel Green, chief executive of global financial advisory firm Devere Group, said the US economy is sending a stagflation warning signal, with growth stalling while inflation refuses to ease. He argued that the Federal Reserve faces a difficult balancing act, as it cannot easily suppress inflation with rate hikes while also supporting growth with rate cuts, and said he expects the federal funds rate to remain unchanged.
After the PCE release, major US stock indexes still opened higher. Gold fell to $4,626 per ounce and silver dropped to $68.31. In crypto markets, bitcoin traded in a 24-hour range of $77,250 to $79,539 and changed hands at $77,600 at 11 a.m. Eastern Time on Wednesday, according to Bitcoin.com News.
Data released by the US Bureau of Economic Analysis showed the personal consumption expenditures price index rose 0.2% in July from the prior month and 3.7% from a year earlier. Core PCE, which excludes food and energy, also increased 0.2% on the month, leaving inflation above the Federal Reserve’s 2% target.
Devere Group CEO flags stagflation warning
Nigel Green, chief executive of global financial advisory firm Devere Group, said the US economy is sending a stagflation warning, with growth stalling while inflation refuses to fall back.
He said the Federal Reserve would struggle to curb inflation through rate hikes while also supporting growth through rate cuts, and he expects the federal funds rate to stay unchanged.
Markets react after the PCE release
After the PCE figures were published, major US stock indexes still opened higher. Gold fell to $4,626 per ounce, while silver dropped to $68.31.
In crypto markets, bitcoin traded between $77,250 and $79,539 over the past 24 hours. At 11 a.m. Eastern Time on Wednesday, BTC was trading at $77,600.
The figures and market moves were cited by Bitcoin.com News and republished in a newsflash by Odaily.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
