{"id":15760,"date":"2025-03-02T17:31:55","date_gmt":"2025-03-02T17:31:55","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=15760"},"modified":"2025-03-02T17:31:55","modified_gmt":"2025-03-02T17:31:55","slug":"pce-inflation-fell-could-this-spell-trouble-for-bitcoins-price","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=15760","title":{"rendered":"PCE Inflation Fell \u2013 Could This Spell Trouble for Bitcoin\u2019s Price?"},"content":{"rendered":"
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PCE inflation is the core Personal Consumption Expenditures index updated by the US Bureau of Economic Analysis. Financial media outlets often refer to the Bureau of Labor Statistics\u2019 Consumer Price Index (CPI).<\/p>\n

But, the Federal Reserve favors the<\/a> PCE for the economic analysis involved in its decision-making process.<\/p>\n

Inflation in US prices across the core consumer basket rose a modest 0.3% from December to January, just as forecasters expected. Meanwhile, the inflation report even fell from a year-over-year point of view.\u00a0That could be more bad news for Bitcoin prices that are already in<\/a> jeopardy.<\/p>\n

Powell: Fed in No Rush to Print<\/h2>\n

As a result of the tepid growth in US consumer prices that has accompanied an abrupt pullback in<\/a> consumer spending, the Fed has room to consider moving interest rates further down the scale.<\/p>\n

The effective federal funds rate currently stands at 4.33%, one percent lower than the 2024 and 2023 levels. The correlation between lower interest rates and support for massive multi-month Bitcoin price rallies is historically very strong.<\/p>\n

But, Federal Reserve leaders like Chair Jerome Powell have indicated that the central bank is taking a wait-and-see approach. The Fed is in no hurry to lower rates.<\/p>\n

Powell told Congress<\/a> in testimony earlier in February, \u201cWe\u2019re in a pretty good place with this economy.\u201d<\/p>\n

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\u201cWe want to make more progress on inflation,\u201d he said. \u201cWe think our policy rate is in a good place and we don\u2019t see any reason to be in a hurry to reduce it further.\u201d<\/p>\n<\/blockquote>\n

Did Bitcoin Tame The Dollar?<\/h2>\n

The new White House and SEC are ardently<\/a> accommodating to the crypto sector, but even the non-partisan, non-government Federal Reserve has taken a softer tone on crypto assets like Bitcoin in recent times.<\/p>\n

While speaking to Congress, Powell said, \u201cBanks are serving crypto customers. We don\u2019t want to get in the way of banks serving perfectly legal customers.\u201d<\/p>\n

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Fed Chair says banks can serve \u2018perfectly legal\u2019 cryptocurrency<\/p>\n

READ: https:\/\/t.co\/Sxq9D1uQNq<\/a> pic.twitter.com\/psCidk3OHM<\/a><\/p>\n

\u2014 Washington Examiner (@dcexaminer) February 12, 2025<\/a><\/p>\n<\/blockquote>\n