In summary: PCE exceeded expectations, and a rate cut in September is uncertain!

To explain it straightforwardly:
1. As soon as the data heats up, the Federal Reserve will be even less likely to ease up.
Inflation cannot be controlled, and cutting interest rates means adding fuel to the market. The Federal Reserve is afraid of problems and does not dare to act rashly.
2. CME futures market expectations directly lowered
At the beginning of the month, over 60% of people bet that there would be a rate cut in September, but now only half still believe that. The market has begun to "do subtraction".
3. There is also division within the Federal Reserve.
Some people think it can be lowered, while others insist on saying "let's wait and see." The mainstream opinion now is still - stay steady, don't rush to release.
4. This is a somewhat bearish signal for the cryptocurrency market.
Because the market originally expected interest rate cuts to boost liquidity, this wave of faucets may not be able to be turned off temporarily, which will have some pressure on altcoin rebounds.

But there is still some opportunity.
If the inflation and employment data in August weaken, market expectations may reverse, and the Federal Reserve may reconsider.
Powell's words are cryptic: he didn't say it definitively, just that "more time is needed for confirmation" - indicating that it's not a complete denial.
With the June PCE data heating up, the prospect of a rate cut in September has basically diminished. For those brothers who want to rely on more liquidity to push things up again, don’t be too optimistic. We are now in the stage of "waiting for the next set of data to see the outcome."

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