U.S. July PCE Rises 3.7% Year-over-Year; Devere Group CEO Warns of Stagflation Risk

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Risk appetite remains cautious as the U.S. July PCE price index rose 0.2% MoM and 3.7% YoY, with core PCE also up 0.2% MoM. Devere Group CEO Nigel Green highlighted concerns about stagflation, pointing to weak growth and persistent inflation. He expects the Fed to hold rates, citing the Fear & Greed Index as a key indicator of shifts in market sentiment.

Odaily Planet Daily report: Data released by the U.S. Bureau of Economic Analysis (BEA) showed that the Personal Consumption Expenditures Price Index (PCE) rose 0.2% month-over-month and 3.7% year-over-year in July; core PCE, excluding food and energy, increased 0.2% month-over-month, with inflation still above the Federal Reserve’s 2% target.

Nigel Green, CEO of global financial advisory firm Devere Group, said the U.S. economy is signaling stagflation warnings, with growth stalling while inflation refuses to subside. He noted that the Federal Reserve finds it difficult to simultaneously combat inflation through rate hikes and support growth through rate cuts, and expects the federal funds rate to remain unchanged.

After the PCE data release, major U.S. stock indices opened higher, while gold prices fell to $4,626 per ounce and silver dropped to $68.31. Bitcoin traded between $77,250 and $79,539 over the past 24 hours, with a price of $77,600 at 11 a.m. Eastern Time on Wednesday. (Bitcoin.com News)

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