The latest US CPI figures have been released, and the result was once again higher than market expectations.
CPI rose 0.4% month over month in October, above the expected 0.3%.
Core CPI rose 0.3% month over month, maintaining the same pace of increase for the third consecutive month.
Among the components, food prices rose 0.5%, housing costs rose 0.3%, and energy prices rose 0.7%.
The most troubling aspect of this report is that US inflation has yet to cool significantly.
Markets have now largely priced in another rate hike in December and have even begun discussing the possibility of a 50-basis-point hike.
However, as of the morning of November 10, the market-implied probability of a 50-basis-point hike was still only about 15%.
If employment data remains strong in the coming months, it may be difficult for the Federal Reserve to ease monetary policy.
For US tech stocks, whose valuations are already high, and the liquidity-dependent crypto market, this is clearly bad news.
$BTC $QQQB $XAUT
CPI rose 0.4% month over month in October, above the expected 0.3%.
Core CPI rose 0.3% month over month, maintaining the same pace of increase for the third consecutive month.
Among the components, food prices rose 0.5%, housing costs rose 0.3%, and energy prices rose 0.7%.
The most troubling aspect of this report is that US inflation has yet to cool significantly.
Markets have now largely priced in another rate hike in December and have even begun discussing the possibility of a 50-basis-point hike.
However, as of the morning of November 10, the market-implied probability of a 50-basis-point hike was still only about 15%.
If employment data remains strong in the coming months, it may be difficult for the Federal Reserve to ease monetary policy.
For US tech stocks, whose valuations are already high, and the liquidity-dependent crypto market, this is clearly bad news.
$BTC $QQQB $XAUT