📊𝑪𝑷𝑰 𝒔𝒉𝒐𝒘𝒔 𝒉𝒐𝒘 𝒎𝒖𝒄𝒉 𝒊𝒏𝒇𝒍𝒂𝒕𝒊𝒐𝒏 𝒆𝒙𝒊𝒔𝒕𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒆𝒄𝒐𝒏𝒐𝒎𝒚
If the inflation situation remains bleak, the Fed has the power to stay hawkish if it wants to, as the unemployment rate is at a whopping 4.1%.
Now, I closely monitor consumer prices.
YoY headline CPI and 2.4% core CPI are priced into the market. Furthermore, August PPI was 5.4% YoY, suggesting that inflationary pressure hasn’t gone away entirely.
My feeling is thus: I’m a tad bearish on stocks if the US Consumer Price Index figure turns out hotter than expected. A rising inflation rate and strong employment can push the market even higher than expected.
I think gold’s response could be tricky. In the beginning, higher yields and a stronger dollar could pressure gold. However, if the market starts worrying about inflation again, gold could start finding buyers.
For me, a key isn’t about ‘hot CPI or cool CPI.’
I want to see how the market reacts after the number is released.
CPI, the Federal Reserve’s predictions, yields, the dollar, as well as investments in stocks and gold.
This is the series that I am watching today. 👀
#CPIWatch
If the inflation situation remains bleak, the Fed has the power to stay hawkish if it wants to, as the unemployment rate is at a whopping 4.1%.
Now, I closely monitor consumer prices.
YoY headline CPI and 2.4% core CPI are priced into the market. Furthermore, August PPI was 5.4% YoY, suggesting that inflationary pressure hasn’t gone away entirely.
My feeling is thus: I’m a tad bearish on stocks if the US Consumer Price Index figure turns out hotter than expected. A rising inflation rate and strong employment can push the market even higher than expected.
I think gold’s response could be tricky. In the beginning, higher yields and a stronger dollar could pressure gold. However, if the market starts worrying about inflation again, gold could start finding buyers.
For me, a key isn’t about ‘hot CPI or cool CPI.’
I want to see how the market reacts after the number is released.
CPI, the Federal Reserve’s predictions, yields, the dollar, as well as investments in stocks and gold.
This is the series that I am watching today. 👀
#CPIWatch