The U.S. core Personal Consumption Expenditures price index rose 2.5% year-over-year in September. The increase exceeded the 2.4% forecast but remained below the previous 3.3% reading and the Federal Reserve’s 2% target. The data points to persistent inflationary pressure and could lead the central bank to adopt a more cautious monetary policy. Market participants anticipate a potentially hawkish response, weighing on financial markets and reducing the perceived likelihood of Bitcoin reaching $78,000 in prediction markets. Upcoming statements by Federal Reserve Chair Jerome Powell may provide further clarity on potential interest-rate adjustments, policy shifts and the implications for cryptocurrency valuations.
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