Lee: Revised PCE Metric Could Show Fed Hiked Too Early, Bolstering Crypto

Financial expert Tom Lee believes that a new methodology for calculating personal consumption expenditures (PCE) could indicate that the Federal Reserve hiked interest rates too early. The revised PCE metric, set to be released on September 30, may lower core inflation readings by 0.2 to 0.4 percentage points.

According to Lee, this change alone could pull the annual reading down from 3.4% to around 3%. He stated that other pressures in the data, such as tariffs and flash memory prices, should also ease in the months ahead.

Lee emphasized that any decline in inflation would not be due to the Fed's recent hikes but rather the policy already in place. This could lead the Fed to 'walk back some of that hawkishness,' making it more bullish for crypto assets such as Bitcoin (BTC).