US August PCE Inflation Cools to 3.4% YoY, Below 3.7% Forecast

A downside surprise in the Fed's preferred gauge matters less for what it says about August than for what it does to the rate-path debate, since PCE is the measure policymakers have repeatedly flagged. For crypto and RWA markets, the practical channel is the same one that has driven sensitivity all year: any cooling that shifts expectations around Fed policy tends to loosen the liquidity conditions risk assets trade against. Whether this single print is treated as a trend or a one-off is the open question, and the next inflation readings are what will settle it.