CPI came in hot today and the market immediately repriced rate expectations.
Odds of a 25bps hike at the Oct 28 Fed meeting jumped to 33% — was under 18% last week. That's a big shift in a short window.
Market's basically saying the Fed's job isn't done yet. If inflation stays sticky, they'll keep tightening even when everyone thinks the cycle's over.
Not great for risk assets short term. But also not shocking if you've been watching the data.
Odds of a 25bps hike at the Oct 28 Fed meeting jumped to 33% — was under 18% last week. That's a big shift in a short window.
Market's basically saying the Fed's job isn't done yet. If inflation stays sticky, they'll keep tightening even when everyone thinks the cycle's over.
Not great for risk assets short term. But also not shocking if you've been watching the data.