CPIWatch | Is the Fed Ready to Hike?

The latest inflation picture is making the Fed decision much more interesting

Nonfarm payrolls came in stronger than expected with 162K jobs added in August while unemployment remained at 4.1 percent

Then we got a hotter PPI reading with producer prices rising 0.4 percent month over month and 5.4 percent year over year

Now CPI has remained elevated at 3.4 percent while core CPI is still showing persistent price pressure

For me the message is becoming quite clear

The US economy is still showing enough strength to handle tighter policy while inflation is not cooling fast enough toward the Fed target

My view is slightly hawkish

I would not be surprised if the Fed chooses to hike rather than hold rates at the upcoming meeting

That could keep pressure on risk assets such as Bitcoin and equities while supporting the US Dollar and potentially creating volatility in Gold

However the market can move aggressively around the decision so I would rather wait for confirmation than chase the first move

The next few sessions could be very important for BTC Gold and the broader risk market

What is your view

Rate Hike or Hold

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