PCE enlargement is the basic personal consumption expenditure index that has been updated by the US Economic Analysis Office. Financial media often refer to the Consumer Prices Index at the CPI.
But the federal reserve Help yourself PCE for the economic analysis involved in the decision -making process.
Inflation in US price via the basic consumer basket increased by 0.3 % from December to January, just as the predictors expect. Meanwhile, the inflation report decreased from an annual point of view. This may be the most bad news of the Bitcoin prices that already suffer from danger.
Powell: Nutrition in any impulsion of printing
As a result of lukewarm growth in consumer prices in the United States, which was suddenly accompanied Retreat Consumer spending, the Federal Reserve has a space to consider moving interest rates more.
The rate of effective federal funds is currently 4.33 %, and it is one percent lower than 2024 and 2023 levels.
But the federal reserve leaders such as President Jerome Powell indicated that the central bank follows the waiting and vision approach. The federal reserve is not in a hurry to low rates.
P. He said Congress In the testimony earlier in February, “We are in a good place with this economy.”
“We want to make further progress in inflation,” he said. “We believe that the rate of our policy is in a good place and we do not see any reason to be in a hurry to reduce it more.”
Do bitcoin tame in dollars?
The new White House and SEC enthusiastically accommodate the encryption sector, but even non -governmental federal reserves have taken a softer tone on encryption assets like Bitcoin recently.
During his talk to Congress, Powell said, “Banks serve encryption customers. We do not want to object to banks that completely serve legal customers.”
The Federal Reserve Chairman says banks can serve a “completely legal” encoded currency
Read: https://t.co/sxq9d1uqnq pic.twitter.com/pscidk3hm
– Washington Examiner (DCEXAMINER) February 12, 2025
The federal reserve directs the monetary system among the maximum reassessment of debt debt and the inflation of cracking prices. Bitcoin exports more currency in addition to the dollar, giving the federal reserve some pillows against the previous.
At the same time, long -term long -term holders are equivalent to providing their money instead of consuming it, giving the central bank another space at interest rates when it comes to consumer inflation.
These are decisive factors in the price of Bitcoin, but there is a first and safer encrypted currency in the world now on the scale that the US government is carefully studying its total effects.
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