The Fed's preferred inflation measure—core PCE—is showing resilience despite widespread concerns about potential tariff-driven price pressures. Recent data suggests the central bank's go-to indicator isn't signaling the kind of runaway inflation that tariffs could theoretically trigger.

For crypto traders and investors, this matters more than you might think. Inflation expectations directly influence monetary policy, which in turn shapes risk appetite for alternative assets like Bitcoin and altcoins. If the Fed's inflation data remains stable, it could support a less hawkish stance, potentially keeping liquidity conditions favorable for growth assets.

That said, the real test lies ahead. Whether tariffs actually translate to sustained price pressures remains an open question. The market's pricing in both scenarios right now, which explains some of the volatility we're seeing across crypto and traditional markets.