October CPI just came out, and the Fed was blunt: interest rates will keep rising, and they could rise faster 💀
Yesterday’s data: October core inflation rose 0.3% month over month, pushing 2-year Treasury yields up 19 basis points in a single day to 4.74%.
The U.S. dollar is gaining broadly against most other major currencies. The reason is that the Fed is sending some very hawkish signals about continuing to tighten monetary policy.
Fed officials have just weighed in: some say rates need to be raised at least twice more between now and the end of the year, at a faster pace. Put simply: money is about to get even more expensive, and this rate-hiking cycle is likely to continue through the start of next year.
Inflation is no longer confined to energy or AI infrastructure—it’s spreading. Global geopolitical tensions continue to disrupt supply chains. October PCE data, due later this month, may further confirm this trend.
This is a difficult environment in the near term. A stronger dollar + rising yields = money flowing out of risk assets.
What you should be focused on right now is: “how much higher, and when will it stop?” And right now, neither answer is favorable for crypto.
Yesterday’s data: October core inflation rose 0.3% month over month, pushing 2-year Treasury yields up 19 basis points in a single day to 4.74%.
The U.S. dollar is gaining broadly against most other major currencies. The reason is that the Fed is sending some very hawkish signals about continuing to tighten monetary policy.
Fed officials have just weighed in: some say rates need to be raised at least twice more between now and the end of the year, at a faster pace. Put simply: money is about to get even more expensive, and this rate-hiking cycle is likely to continue through the start of next year.
Inflation is no longer confined to energy or AI infrastructure—it’s spreading. Global geopolitical tensions continue to disrupt supply chains. October PCE data, due later this month, may further confirm this trend.
This is a difficult environment in the near term. A stronger dollar + rising yields = money flowing out of risk assets.
What you should be focused on right now is: “how much higher, and when will it stop?” And right now, neither answer is favorable for crypto.
