🔥 PPI blew past forecasts: inflation is spreading through the economy, and the Fed isn’t ready to pause
❗️ Producer prices rose 1.3% month over month, versus a forecast of 0.6%. Year over year, they were up 6.3%, instead of 5.3%. Together with yesterday’s CPI (3.7%, core 2.6%), this is the second signal in a row that high oil prices are feeding into other prices.
📊 The other data aren’t helping the Fed either. Jobless claims came in at 199,000, exactly as forecast, with no sign of layoffs. The Empire State Index jumped to 25.5, versus expectations of 12.1. Philadelphia came in below forecast at 20.9, but remained in positive territory.
📌 Bottom line: prices are rising faster than expected, and the economy isn’t faltering. The Fed has no reason to delay a rate hike. This is the last major batch of data before the October 28 meeting, and the central bank is heading into it with prices running hot.
🏦 This puts pressure on markets. The odds of an October hike are rising, giving yields and the dollar room to climb, while risk assets and crypto may have a harder time.
👀 The key indicator: the yield on 10-year U.S. Treasury bonds. A new high above 5.37% could intensify the pressure.
💬 What will put more pressure on BTC: rising yields or the Fed’s October 28 decision?
❗️ Be alert and exercise caution. Always manage your risk.
#btc #ПротоколFOMC #ppi
$BTC
$ETH
❗️ Producer prices rose 1.3% month over month, versus a forecast of 0.6%. Year over year, they were up 6.3%, instead of 5.3%. Together with yesterday’s CPI (3.7%, core 2.6%), this is the second signal in a row that high oil prices are feeding into other prices.
📊 The other data aren’t helping the Fed either. Jobless claims came in at 199,000, exactly as forecast, with no sign of layoffs. The Empire State Index jumped to 25.5, versus expectations of 12.1. Philadelphia came in below forecast at 20.9, but remained in positive territory.
📌 Bottom line: prices are rising faster than expected, and the economy isn’t faltering. The Fed has no reason to delay a rate hike. This is the last major batch of data before the October 28 meeting, and the central bank is heading into it with prices running hot.
🏦 This puts pressure on markets. The odds of an October hike are rising, giving yields and the dollar room to climb, while risk assets and crypto may have a harder time.
👀 The key indicator: the yield on 10-year U.S. Treasury bonds. A new high above 5.37% could intensify the pressure.
💬 What will put more pressure on BTC: rising yields or the Fed’s October 28 decision?
❗️ Be alert and exercise caution. Always manage your risk.
#btc #ПротоколFOMC #ppi
$BTC
$ETH