#CPIWatch — Will CPI Trigger a Rate Hike?
Guys, this CPI report is one of the most important data points for the market right now.
The latest Nonfarm Payrolls came in stronger than expected, which showed that the US economy is still holding up. Now all eyes are on CPI.
The big question is simple:
Will inflation stay hot enough to force the Fed to hike, or will they hold?
Personally, I’m leaning toward a hold, but I don’t think the risk of a hike can be ignored.
If CPI comes in hotter than expected, I think we could see pressure on stocks, while the dollar and Treasury yields could move higher.
But if inflation comes in softer, that could give risk assets some relief.
For me, the CPI number matters more than the headline reaction.
I’ll be watching the actual data, market reaction and Fed expectations before making any aggressive move.
Guys, this CPI report is one of the most important data points for the market right now.
The latest Nonfarm Payrolls came in stronger than expected, which showed that the US economy is still holding up. Now all eyes are on CPI.
The big question is simple:
Will inflation stay hot enough to force the Fed to hike, or will they hold?
Personally, I’m leaning toward a hold, but I don’t think the risk of a hike can be ignored.
If CPI comes in hotter than expected, I think we could see pressure on stocks, while the dollar and Treasury yields could move higher.
But if inflation comes in softer, that could give risk assets some relief.
For me, the CPI number matters more than the headline reaction.
I’ll be watching the actual data, market reaction and Fed expectations before making any aggressive move.