US July PCE Inflation Rate 0.2% MoM, Beats Expectations

The stronger-than-expected core inflation reading complicates the narrative of a swiftly cooling price environment, which markets had been pricing into rate-cut expectations. For crypto and RWA markets, this data point matters because it directly feeds into the cost of capital and the opportunity cost of holding non-yielding assets. The immediate focus shifts to how the Fed interprets this single print against the broader trend of disinflation. Whether this marks the start of a stickier inflation regime or is an outlier in a downward path is the key variable for risk asset valuations in the near term.