The crypto community has witnessed a massive rally in recent days following Trump’s victory, increased institutional interest, and favorable market catalysts. Notably, the crypto market is set to enter a crucial week as major events such as US PCE inflation, FOMC minutes, and Q3 GDP data are expected to be released in the coming week. Investors are eagerly awaiting the impact of these events on asset prices.
US PCE inflation and FOMC minutes in brief
Globally, investors will keep an eye on November 27 as several US economic figures as well as the minutes of the November FOMC policy meeting will be released on that day. The key thing to watch will be whether the Federal Reserve strongly signals a third interest rate cut at the December policy meeting or not in the minutes, as Federal Reserve officials’ views regarding cutting interest rates rates are mixed.
The US FOMC meeting for November is scheduled for Tuesday, November 26. The minutes will also be closely watched as recent reports show the US Federal Reserve said it would not focus on the upcoming 2% inflation target. Additionally, the new Trump-created Department of Government Efficiency, led by Elon Musk, is focused on cutting federal spending, which will force investors to closely monitor the central bank’s minutes this week.
Key events to watch
Focus will also be on the second estimate of US GDP growth figures for the September quarter. Preliminary estimates put growth at 2.8 percent for the September quarter, compared to 3 percent growth in the June quarter.
Additionally, the third-quarter U.S. GDP release is scheduled for Wednesday, which will provide insights into U.S. economic health, which will also impact the financial sector as a whole.
For inflation, the PCE inflation report due Wednesday is expected to show an increase of 0.2% for October, with a year-on-year rise expected at 2.3%, up from 2.1% previously.
The inflation target
The Federal Reserve has become more cautious after a significant rate cut in September and is considering further stimulus over the coming years. This change likely reflects a market adjustment to expectations of higher inflation. Fed Chairman Jerome Powell stressed that reaching the 2% inflation target remains a priority.
In addition, Core PCE inflation figures, excluding energy and food prices, are expected to show an increase of 2.8%, compared to 2.7% in September. The monthly figure is expected to remain unchanged at 0.3%.
The market will closely monitor these key macroeconomic events. Additionally, the crypto expiration is also expected to impact trader sentiment amid the ongoing market rally.
