Wall Street woke up to a jolt on February 28, 2025. The PCE inflation report fallout 2025 hit hard—core PCE climbed to 2.6% year-over-year, hotter than the Fed’s 2% goal. Stocks tanked at the opening bell, with S&P 500 futures diving 0.4%. This USA market crash moment has traders scrambling—are Fed rate policy 2025 cuts off the table? Here’s the breakdown.
What Sparked the PCE Inflation Fallout?
The numbers don’t lie. The PCE inflation fallout 2025 came from a 0.3% monthly jump in core PCE—above the expected 0.2%. Annual PCE hit 2.5%, up from January’s 2.3%, per the Commerce Department. Economists hoped for cooler vibes, but inflation’s sticking around. Fed Chair Jerome Powell’s “2% or bust” mantra? It’s looking shaky—markets fear rate cuts are toast.
Key figures
- Core PCE: 2.6% YoY, up from 2.5%.
- Monthly Rise: 0.3%, hotter than forecast.
- Stocks: S&P 500 down 0.4% pre-market.
X traders freaked—one wrote, “PCE just killed my portfolio!”
Why Are Markets Crashing?
Panic set in fast. The USA market crash kicked off as bond yields spiked—10-year Treasuries rose 8 basis points. Investors slashed bets on Fed rate policy 2025 cuts, with CME FedWatch now showing one cut in December, down from two. Trump’s tariff talk isn’t helping—Evercore warns it could push PCE to 2.8% by year-end. Tech stocks like Nvidia felt the heat, dropping 1% despite yesterday’s earnings glow.
What’s the Fed Thinking Now?
Rate cuts are in limbo. The Fed rate policy 2025 shift comes after December’s two-cut hint—now it’s a maybe. Chicago Fed’s Austan Goolsbee told CNBC, “It’s not panic time,” but markets disagree. January’s CPI already stung, and this PCE inflation fallout 2025 doubles down. X users speculate—one asked, “Hikes next?” Powell’s March 19 meeting could be a game-changer.
What’s shifting
- Rates: Locked at 4.25%-4.5% for now.
- Pressure: Tariffs loom large.
- Next Move: Data-driven, but uncertain.
What’s Ahead for Your Money?
Investors brace for pain. The PCE inflation fallout 2025 means borrowing stays pricey—cheap loans are a pipe dream. Gold (XAU/USD) wobbled at $2,873, hinting at safe-haven bids if stocks slide more. Will this USA market crash stick? X debates rage—one user shrugged, “Just a blip.”
Read Also- PCE Inflation Report Shocks Markets: Fed Rate Cuts in Doubt?
