THE FED IS NOW FACING A HUGE DILEMMA. US CPI and Core CPI data has just been released, and they are sending mixed signals.
US CPI rose by 0.3% MoM, while expectations were for 0.2%. Meanwhile, Core CPI met expectations and fell to its lowest level since March 2021.
Normally, the Fed uses Core CPI as its inflation gauge, since it excludes energy price increases.
So the Fed now has 2 options.
Raise rates when inflation is being driven mainly by one thing, which is oil.
Pause rates, but if oil prices keep rising, the Fed will have to make up for it with larger hikes in the future. $BTC $ETH $TFUEL
US CPI rose by 0.3% MoM, while expectations were for 0.2%. Meanwhile, Core CPI met expectations and fell to its lowest level since March 2021.
Normally, the Fed uses Core CPI as its inflation gauge, since it excludes energy price increases.
So the Fed now has 2 options.
Raise rates when inflation is being driven mainly by one thing, which is oil.
Pause rates, but if oil prices keep rising, the Fed will have to make up for it with larger hikes in the future. $BTC $ETH $TFUEL
