🚨 FED RATE HIKE ALERT — BUT IS IT REALLY ABOUT INFLATION? 👀
Wall Street is now almost 90% pricing in a 25 BPS Fed rate hike next week
And even
Goldman Sachs has changed its call, now expecting the Fed to hike instead of holding rates.
🔥 The interesting part: Goldman says today’s CPI data did NOT materially change its inflation outlook.
So why the shift?
👉 Markets are already heavily positioned for a hike.
👉 Staying on hold could trigger a major reaction in stocks, bonds and crypto.
👉 Some economists argue the Fed may be hiking partly to calm Wall Street expectations, not simply because inflation is exploding.
📊 Current inflation picture:
• Core CPI: 2.4% YoY — around a 5-year low
• Wage growth: 3.1% YoY
• Fed inflation target: 2%
• Markets: ~90% odds of a hike
But there’s another side 👀
KPMG economist Diane Swonk argues that services inflation remains hot, with super-core services up 0.5% and expects potentially 3 rate hikes by early 2027.
💡 My take:
The Fed is facing a difficult choice. Hiking could strengthen its inflation-fighting credibility, but if the move is mainly to satisfy market expectations, it could create another problem for the economy.
And for crypto traders, the big question is:
Will a 25 BPS hike trigger a $BTC dip… or has the market already priced it in? 👀📉📈
#Bitcoin #Crypto #Fed #InterestRates #Inflation $XRP
Wall Street is now almost 90% pricing in a 25 BPS Fed rate hike next week
And even
Goldman Sachs has changed its call, now expecting the Fed to hike instead of holding rates.
🔥 The interesting part: Goldman says today’s CPI data did NOT materially change its inflation outlook.
So why the shift?
👉 Markets are already heavily positioned for a hike.
👉 Staying on hold could trigger a major reaction in stocks, bonds and crypto.
👉 Some economists argue the Fed may be hiking partly to calm Wall Street expectations, not simply because inflation is exploding.
📊 Current inflation picture:
• Core CPI: 2.4% YoY — around a 5-year low
• Wage growth: 3.1% YoY
• Fed inflation target: 2%
• Markets: ~90% odds of a hike
But there’s another side 👀
KPMG economist Diane Swonk argues that services inflation remains hot, with super-core services up 0.5% and expects potentially 3 rate hikes by early 2027.
💡 My take:
The Fed is facing a difficult choice. Hiking could strengthen its inflation-fighting credibility, but if the move is mainly to satisfy market expectations, it could create another problem for the economy.
And for crypto traders, the big question is:
Will a 25 BPS hike trigger a $BTC dip… or has the market already priced it in? 👀📉📈
#Bitcoin #Crypto #Fed #InterestRates #Inflation $XRP
