Bitcoin remains above $83,000 as market participants weigh the impact of PCE inflation data and methodology adjustments on future Federal Reserve policy.
Bitcoin price exceeded $85 000 as US August PCE inflation data arrived at 3.4%, falling short of the 3.7% market forecast.
Richmond Fed President Thomas Barkin warns that persistent inflation remains well above the 2% target, complicating future interest rate decisions.
The Federal Reserve faces a potential policy dilemma as a scheduled interest rate decision precedes a major revision of inflation data that could retroactively lower core PCE readings.
Bloomberg economist Anna Wong notes that the Federal Reserve's September rate decision depends on precise PCE inflation forecasts.
