U.S. Core PCE Inflation Data Sparks Market Volatility

The U.S. Department of Commerce released the April Core PCE Price Index, showing a 2.5% inflation rate year-over-year, marking a slight decrease from March’s 2.6%. This data, crucial for monetary policy adjustments by the Federal Reserve, is expected to influence global markets significantly. Analysts anticipate continued moderation in inflation, potentially leading the Fed to further tighten monetary policy. However, there are concerns about prolonged interest rate hikes impacting financial stability. Market reactions have been volatile, particularly within cryptocurrency trading.