U.S. CPI and core CPI for September both came in higher than the market expected. Inflation hasn’t been brought under control.
With inflation high, the Fed is even less likely to cut rates, and may push rate cuts further into the future.
Expectations for rate cuts cool → Treasury yields are more likely to rise → risk assets like Bitcoin come under pressure.
Core CPI rose 2.6% year over year, versus 2.5% expected, and 0.3% month over month, versus 0.2% expected. Both figures beat expectations, signaling a rebound in inflation.
The market had been betting that the Fed could cut rates sooner. These figures will now weaken expectations for rate cuts!
After the data came out, the market began pricing in three rate hikes next year.
With inflation high, the Fed is even less likely to cut rates, and may push rate cuts further into the future.
Expectations for rate cuts cool → Treasury yields are more likely to rise → risk assets like Bitcoin come under pressure.
Core CPI rose 2.6% year over year, versus 2.5% expected, and 0.3% month over month, versus 0.2% expected. Both figures beat expectations, signaling a rebound in inflation.
The market had been betting that the Fed could cut rates sooner. These figures will now weaken expectations for rate cuts!
After the data came out, the market began pricing in three rate hikes next year.