September Inflation Report Signals Persistent Pressure as Core PCE Hits 2.9%
The Federal Reserve’s preferred inflation gauge—core PCE—likely ROSE 2.9% year-over-year in September, mirroring August’s stubbornly elevated reading. This marks 55 consecutive months above the Fed’s 2% target, complicating policymakers’ efforts to curb price growth without exacerbating labor market weakness.
Tariffs imposed during the TRUMP administration continue to reverberate, with businesses passing import costs to consumers. The September report, due Friday, is projected to show headline PCE inflation climbing to 2.8%, its highest since April 2024—a divergence from the disinflationary trend that followed 2022’s peak.
Market participants now weigh whether the Fed will prioritize supporting employment over inflation containment at next week’s meeting. Cryptocurrencies like BTC and ETH often react to macroeconomic uncertainty, while exchange-traded tokens such as DOGE and SHIB remain volatile amid shifting risk appetites.
