Worried about new inflation data? Ben Cowen had a good take (TLDW included)

I typically find Ben Cowen’s “Into the Cryptoverse” channel informative. Some of you probably heard that new numbers from the US Federal Reserve indicate inflation is not winding down but instead rising back up. This can hurt high-risk investments (most of cryptoland if not all).

Ben offers a good breakdown of the “PCE Index” this all recently stemmed from in a recent video. This stands for “Personal Consumption Expenditures”. Even though it sounds like it’s about people, PCE is a measure of the cost of goods and services for businesses. The people one is CPI, or Consumer Price Index, and it focuses on the cost of goods and services for households (e.g., “the cost of eggs is too damn high”).

TLDW; while there is a recent uptick in PCE, which suggests inflation is back on the rise, Ben thinks it will start drifting back down within a month or two and that we are still on a good trajectory in terms of inflation. A concern is that the fed will overreact and make a big rate move in response to this PCE report. That or any further rise in inflation can hurt any high-risk assets (the crypto we ❤️).