Federal Reserve officials warn: December core PCE increase hits a new high for the year, inflation pressures re-emerge

NullWhisperer · 2026-01-22T15:00:11+00:00

The Federal Reserve's December core inflation index increased by 0.38% month-on-month, pushing the year-on-year growth rate up to 3.0%, indicating a resurgence in inflationary pressure. This change impacts the cryptocurrency market, as investors may reassess asset allocations due to adjusted interest rate expectations, leading to cryptocurrency price fluctuations.

NullWhisperer

2026-01-22 15:00:11

Abstract generation in progress

【Crypto World】According to the latest data analysis from Federal Reserve insiders, the core inflation rate for December increased by 0.38% month-over-month. Although this figure seems modest, it has driven the year-over-year increase to 3.0%—the highest level since February of this year.

Economists generally agree on the interpretation: inflationary pressures are re-emerging. In the context of relatively mild data in previous months, this rebound is particularly noteworthy. Looking at the transmission chain from consumer prices to producer prices, upstream cost pressures still exist, and downstream price transmission continues.

For the cryptocurrency market, such data is especially sensitive. The Federal Reserve’s policy stance often adjusts based on changes in inflation expectations, and market expectations of interest rate trends directly influence the performance of risk assets. When inflation data exceeds expectations and rises, investors typically reassess their asset allocation strategies. This change in expectations is often reflected in cryptocurrency price fluctuations within hours.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

15 Likes

Reward
15
6
Repost
Share

Comment

0/400

ForkYouPayMe

· 1h ago

Damn, inflation is here again? Now the Federal Reserve has to change its tone, the crypto world is about to explode --- 3.0% this number, feels like a bomb about to go off --- Wait, upstream costs have been suppressed all along, what does that mean? Are interest rates going to rise further? --- I knew this rebound wouldn't last long, time to reassess again... So troublesome --- This is ridiculous, as soon as the data comes out, I have to quickly adjust my positions, is there such a hassle

View OriginalReply0

MEVHunterLucky

· 7h ago

0.38% is such a small margin, can it push up to 3.0%? This inflation rebound is a bit fierce. If the Federal Reserve really adjusts its policy, the crypto market will have to tremble... PCE hits a new high again, and interest rate expectations will have to be recalculated.

View OriginalReply0

MetaverseLandlord

· 7h ago

Oh my, the small figure of 0.38% directly doubled to 3.0%, what is the Federal Reserve playing at? Inflation is rising again, it feels like the previous dream of rate cuts is about to be shattered. This rebound is indeed a bit fierce, but it's okay, the coin price may fluctuate but it's not necessarily a bad thing. Let's wait and see how the Federal Reserve chooses; if they continue to raise interest rates, we might really cry.

View OriginalReply0

RugpullSurvivor

· 7h ago

Here we go again, PCE is about to cause trouble, this time the increase surpasses 3.0%... Fine, our crypto circle will have to rebalance again. Wait, upstream cost pressures haven't eased yet? Then the Federal Reserve really doesn't want to raise interest rates again, didn't they say they would slow down? The coin prices are probably going to fall another round. Interest rate expectations are the most confusing thing. Always said inflation wasn't fully under control, and it actually rebounded. No wonder the crypto market is so dull today.

View OriginalReply0

ColdWalletAnxiety

· 7h ago

0.38% doesn't seem like much, but when you look at the YoY 3.0%, it blows up. This is the real trap. The Federal Reserve is about to cause trouble again, and the crypto market might experience turbulence. Inflation is back, and the interest rate expectations have changed again. Our holdings are about to be harvested once more. Upstream pressure hasn't eased, and downstream transmission is still ongoing. This work isn't finished. In plain words, the hawks are about to speak, and the price of coins is expected to plunge. When inflation pressure increases, risk assets are the first to suffer. Crypto investors need to be cautious. A YoY high of 3.0%? The Fed will have to raise interest rates now, and the crypto market will bleed again. The market reacts to this within hours, and I bet the prices will start falling today.

View OriginalReply0

fren_with_benefits

· 7h ago

Inflation is up again, the crypto world is going to have a tough time... Oh my god, 3.0%, we've really returned to the February level. Next time the FBI probably will hold a meeting again. So should we add to our positions or run away now? This rebound feels a bit fierce. 0.38% doesn't seem like much, but when you stack up this year-over-year number, it's really sneaky and intense. As soon as the Federal Reserve changes its tone, the price starts to shake three times. We've seen through that long ago. Is it really that inflation hasn't decreased or is the data fake... I'm over it. So, holders should pray that interest rates don't rise again, or else they might have to cut their losses.

View OriginalReply0