Fed Awaits May PCE After 4th Straight Hold at 3.50%-3.75%
Updated
Updated · Kraken Blog · Jun 24
Fed Awaits May PCE After 4th Straight Hold at 3.50%-3.75%
3 articles · Updated · Kraken Blog · Jun 24
Summary
Thursday’s May PCE report is the first major inflation reading since the Fed left rates unchanged at 3.50%-3.75% on June 16-17, with markets watching whether price pressures finally eased.
April PCE ran at 3.8% year over year on the headline measure and 3.3% on core, still well above the Fed’s 2% target and keeping the hold-versus-hike debate alive.
A softer May print could reduce pressure for tighter policy and revive rate-cut expectations, while a flat or hotter reading would reinforce the current stance and support bets on a possible 2026 hike.
The inflation release starts a dense stretch for macro-sensitive crypto markets, with Deribit’s June 26 options expiry, the EU’s July 1 MiCA compliance deadline and the June jobs report on July 2 all ahead of the July 28-29 FOMC meeting.