U.S. February PCE "Inflation Heats Up" Fed Rate Cuts May Be Delayed, U.S. Stocks Closed in the Red, Bitcoin Barely Holds at 84,000

The latest data released by the Bureau of Economic Analysis (BEA) of the US Department of Commerce late yesterday (28) showed that the US personal consumption expenditure price index (PCE) performed strongly in February, reflecting the persistence of inflationary pressures. Affected by this, both U.S. stocks and bitcoin have been impacted. (Synopsis: Fed Postik: This year's expected "only 1 rate cut" tariff war hinders the effectiveness of inflation, Trump again pressures Powell to cut interest rates) (Background supplement: Trump presses the Fed again: grocery and gasoline prices have both fallen, and it must be good to cut interest rates now) The latest data released by the Bureau of Economic Analysis (BEA) of the US Department of Commerce late yesterday (28) showed that the US personal consumption expenditure price index (PCE) performed strongly in February, reflecting the persistence of inflationary pressures. Specifically: the PCE price index increased by 0.3% m/m and 2.5% y/y in February; The Core PCE Price Index, which excludes fluctuations in food and energy prices, rose 0.4% m/m and 2.8% y/y. Notably, the 2.8% annual rate of core PCE, favored by the US Federal Reserve (Fed), was higher than market expectations of 2.7%, the highest since December 2024, and the monthly rate of 0.4% was also higher than the expected 0.3%, the highest since January 2024. In addition, the latest report from the University of Michigan on Friday showed that the US consumer confidence index fell to a new low in more than two years in March, and long-term inflation expectations climbed to a 32-year high. Analyst: PCE data may force Fed to revise interest rate cut plan US February PCE data suggests that inflationary pressures have not yet eased, and the unexpected rise in core PCE is particularly worrying. In this regard, market analyst @Phyrex_Ni pointed out that under the influence of external factors such as tariff policy, inflation is difficult to subside in the short term, which may force the Fed to reassess its interest rate cut plan. Although the Fed predicted two rate cuts in 2025 at its March FOMC meeting, the strong performance of this data may delay the timing of rate cuts, or even reduce the number of rate cuts, casting a shadow over the policy outlook. 核心 PCE 的数据已经公布,比市场的预期还要高一些,二月的数据是 2.8% ,高于一月的 2.6% ,在没有实质关税的干扰下通胀仍然出现了小幅上涨,如果叠加关税的效应,可能通胀在短期仍然不会好过。 … pic.twitter.com/JatVYUxzVv — Phyrex (@Phyrex_Ni) March 28, 2025 FedWatch: 65% rate cut in June However, according to the latest data from CME Group's FedWatch tool, the current market expects Fed to remain unchanged in May; However, for the June forecast, after the PCE data, the market believes that the probability of a one-yard rate cut in June has increased to 65% from 58.4% the previous day, and the probability of keeping the rate unchanged has fallen to 25.3% from 34.5% the previous day. U.S. stocks tumbled After the release of PCE data, the reaction of the U.S. stock market showed that investors' concerns that an unexpected rise in inflation could lead to a delay in the Fed's interest rate cut, coupled with the Trump administration's upcoming announcement of the reciprocal tariff plan on April 2, the consumer confidence index plummeted, and the four major indexes of U.S. stocks closed black across the board last night: The U.S. Dow fell 715.8 points, or 1.69%, to close at 41,583.9 points. The Nasdaq fell 481.04 points, or 2.7%, to close at 17,322.99. The S&P 500 fell 112.37 points, or 1.97%, to close at 5,580.94. The Philadelphia Semiconductor Index fell 130.35 points, or 2.95 percent, to close at 4,284.91. Bitcoin is close to $84,000 The cryptocurrency market was also affected by PCE data, Bitcoin has continued to fall since yesterday (28) afternoon, PCE reported and then ushered in selling pressure, the lowest fell to $83,585. However, at the time of writing, the currency price has recovered, tentatively trading at $84,373, a decline of 3.38% in the past 24 hours. Related reports $1.3 billion bet on Bitcoin, can GameStop's transformational bet win? GameStop learns micro-strategies to buy Bitcoin! 1.3 billion magnesium convertible bonds will be issued, and the stock price will fall by 22% Beyond the store of value: where is the footsteps of Bitcoin BTCFi now? This article was first published in BlockTempo's "Dynamic Trend-The Most Influential Blockchain News Media".