Markets Tumble as Fed's Favorite Inflation Gauge Spikes; Bitcoin Slides, Stocks Dump
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The core PCE price index rose 0.4% in February, marking the most significant monthly increase since January 2024, signaling persistent inflation. Simultaneously, consumer spending growth underperformed expectations, suggesting potential economic cooling. This data complicates the Federal Reserve's potential timeline for interest rate cuts.
March 28, 2025 | 4:30 pm
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Bitcoin price likely declined due to the unexpected inflation data, which increases economic uncertainty and reduces appetite for risky assets.
Higher inflation reduces likelihood of near-term Fed rate cuts, which typically supports risk assets like Bitcoin. The unexpected PCE index spike suggests continued monetary tightness, likely pressuring cryptocurrency prices.
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