Crypto Market Braces for Inflation Data, Jobs Numbers, and Fed Clues
The crypto market is gearing up for a pivotal week as several key U.S. economic indicators are set to be released, which could shape expectations of Federal Reserve policy.
The main attention will be on the Personal Consumption Expenditures (PCE) price index for July, scheduled for release on Wednesday. The PCE index is the preferred inflation measure of the Fed and is expected to show a 0.1% month-on-month increase from June's decline of 0.1%. Meanwhile, the annual rate is forecasted to be 3.6%, down from 3.7% previously.
The data will be carefully considered before the Fed's September meeting. If the inflation reading comes in higher than expected, it could further support expectations that interest rates will stay high. Conversely, a more benign print might bolster anticipation for easier policy.
In addition to the PCE index, the latest GDP growth projections call for 1.5% annualized expansion in the second quarter, up from 2.1% growth in the first quarter. The new GDP report will also be released on Wednesday.