1Final Step by the Fed? 🛑The core CPI data for August, which rose 0.3% MoM, has sent markets into a panic. The probability of the Fed raising interest rates by 25bp this week immediately jumped to 90%. I project that this hike will happen for sure, but it will be a one-time (one-off) adjustment at the peak of the cycle to maintain the central bank’s credibility.
If this scenario plays out, the asset movement map will split into two:📉 Bearish (Technology & BTC): Tightening liquidity will weigh on technology stocks and crypto in the short term.📈 Bullish (Gold): Gold, on the other hand, benefits as a hedge (safe haven) as macro uncertainty peaks
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