Fed Vice Chair Flags Sticky Inflation

Federal Reserve Vice Chair Philip Jefferson expects December PCE inflation at ~2.9% YoY.

This confirms inflation is cooling but not fast enough for an easy policy pivot.

The Fed remains data-dependent, with patience still the dominant strategy.

Markets are now watching rates, not narratives.

How a 2.9% PCE Projection Affects Crypto 👇

1. Fewer Near-Term Rate Cuts

PCE is the Fed’s preferred inflation gauge.

At 2.9%, inflation is still above the 2% target → rate cuts get delayed.

2. Liquidity Stays Tight

No aggressive easing = limited dollar liquidity.

This usually caps explosive upside in crypto short term.

3. Volatility Over Direction

Crypto tends to chop in ranges when macro clarity is missing.

Expect rotation, not broad altcoin season.

4. Medium-Term Bullish If Trend Continues

If PCE keeps drifting lower in coming months:

Rate cuts get priced in

Risk assets (BTC first, then alts) benefit

Bottom line:

2.9% PCE is neutral-to-slightly bearish short term, constructive long term.

Crypto isn’t killed by this data it’s just forced to wait.

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