Today's CPI data has locked in December's rate hike.
Before CPI data, the odds of a 25 bps hike were already at 99%.
The only thing that would have changed this in rate pause favour would be a cool inflation print, but it didn't happen.
CPI went up 0.4% MoM vs. 0.3% expected.
Core CPI went up 0.3% MoM vs. 0.2% expected.
This means if excluding the energy prices, the inflation still went up, and this will give a free hand to the Fed for hiking rates.
#HotCPIDecemberHikePriced
Before CPI data, the odds of a 25 bps hike were already at 99%.
The only thing that would have changed this in rate pause favour would be a cool inflation print, but it didn't happen.
CPI went up 0.4% MoM vs. 0.3% expected.
Core CPI went up 0.3% MoM vs. 0.2% expected.
This means if excluding the energy prices, the inflation still went up, and this will give a free hand to the Fed for hiking rates.
#HotCPIDecemberHikePriced
