#op🔥🔥
🚨 U.S. PPI COMES IN SLIGHTLY BELOW EXPECTATIONS AT 6.5%: DOES THIS CHANGE EXPECTATIONS FOR A FED RATE HIKE IN DECEMBER? 🇺🇸📉
The U.S. Producer Price Index (PPI) for October came in at 6.5% year over year (0.3% month over month), slightly below the consensus of 6.6% year over year / 0.4% month over month, although it continued accelerating from September’s 6.3% and reached its highest level in nearly 4 years.
As the last major inflation reading before the Federal Reserve’s December 8–9 FOMC meeting (November’s CPI won’t be released until December 10), this slight miss triggered an immediate relief bounce in Bitcoin ($BTC), which climbed back above $70,000, but Wall Street says the Fed’s baseline plan has not changed.
📌 Why the slight PPI miss won’t prevent a hike in December
🏦 A 25-basis-point hike remains virtually certain: Earlier this week, October’s CPI posted a solid 0.4% month-over-month increase (0.3% core), keeping consumer inflation well above the 2% level the Fed considers appropriate. Futures markets continue to assign an over 85% probability to a 25-basis-point rate hike on December 9 (which would raise the target range )
🧊 What changed (fears of a 50-basis-point hike have eased): Before the CPI release, Fed Governor Christopher Waller warned that a core CPI reading of 0.3% or higher could justify a larger, 50-basis-point hike. Since the PPI components that feed into core PCE came in somewhat softer than feared, bets on a massive 50-basis-point hike declined, giving risk assets some breathing room.
🔥 Underlying pressures persist: With core PPI holding at 5.0% year over year and energy and oil pressures 🔥🛢️
$ZEC
🚨 U.S. PPI COMES IN SLIGHTLY BELOW EXPECTATIONS AT 6.5%: DOES THIS CHANGE EXPECTATIONS FOR A FED RATE HIKE IN DECEMBER? 🇺🇸📉
The U.S. Producer Price Index (PPI) for October came in at 6.5% year over year (0.3% month over month), slightly below the consensus of 6.6% year over year / 0.4% month over month, although it continued accelerating from September’s 6.3% and reached its highest level in nearly 4 years.
As the last major inflation reading before the Federal Reserve’s December 8–9 FOMC meeting (November’s CPI won’t be released until December 10), this slight miss triggered an immediate relief bounce in Bitcoin ($BTC), which climbed back above $70,000, but Wall Street says the Fed’s baseline plan has not changed.
📌 Why the slight PPI miss won’t prevent a hike in December
🏦 A 25-basis-point hike remains virtually certain: Earlier this week, October’s CPI posted a solid 0.4% month-over-month increase (0.3% core), keeping consumer inflation well above the 2% level the Fed considers appropriate. Futures markets continue to assign an over 85% probability to a 25-basis-point rate hike on December 9 (which would raise the target range )
🧊 What changed (fears of a 50-basis-point hike have eased): Before the CPI release, Fed Governor Christopher Waller warned that a core CPI reading of 0.3% or higher could justify a larger, 50-basis-point hike. Since the PPI components that feed into core PCE came in somewhat softer than feared, bets on a massive 50-basis-point hike declined, giving risk assets some breathing room.
🔥 Underlying pressures persist: With core PPI holding at 5.0% year over year and energy and oil pressures 🔥🛢️
$ZEC
