🚨 THE FED'S DECEMBER RATE HIKE IS ALMOST A DONE DEAL. HOTTER CPI JUST MADE THINGS WORSE FOR MARKETS.
Before today's inflation report, markets were already heavily pricing in a December rate hike.
The only major development that could have shifted expectations toward a pause was a cooler-than-expected inflation reading.
But that didn't happen.
Here's the damage:
🔴 Headline CPI: +0.4% MoM vs. +0.3% expected
🔴 Core CPI: +0.3% MoM vs. +0.2% expected
The most concerning signal?
Core inflation remains sticky even when volatile food and energy prices are excluded.
This gives hawkish Fed policymakers another reason to maintain pressure on inflation.
And there's more.
Fed Governor Christopher Waller has already indicated that a 50 bps hike should be considered if inflation remains elevated.
WHAT THIS MEANS FOR MARKETS:
🇺🇸 DXY: Potential bullish pressure 📈 US Treasury Yields: Potential upside 🥇 Gold: Bearish pressure from rising yields ₿ Bitcoin: Higher risk of further selling 📉 US Stocks: Higher borrowing costs could pressure valuations
The December 9 FOMC decision is now the next major catalyst.
One important distinction: A 25 bps hike is strongly priced in, not officially confirmed. The possibility of a larger 50 bps move has also entered market pricing.
The market was hoping for inflation relief. Instead, it got another warning.
#CPI #Inflation #Bitcoin #Crypto #USMarkets
Before today's inflation report, markets were already heavily pricing in a December rate hike.
The only major development that could have shifted expectations toward a pause was a cooler-than-expected inflation reading.
But that didn't happen.
Here's the damage:
🔴 Headline CPI: +0.4% MoM vs. +0.3% expected
🔴 Core CPI: +0.3% MoM vs. +0.2% expected
The most concerning signal?
Core inflation remains sticky even when volatile food and energy prices are excluded.
This gives hawkish Fed policymakers another reason to maintain pressure on inflation.
And there's more.
Fed Governor Christopher Waller has already indicated that a 50 bps hike should be considered if inflation remains elevated.
WHAT THIS MEANS FOR MARKETS:
🇺🇸 DXY: Potential bullish pressure 📈 US Treasury Yields: Potential upside 🥇 Gold: Bearish pressure from rising yields ₿ Bitcoin: Higher risk of further selling 📉 US Stocks: Higher borrowing costs could pressure valuations
The December 9 FOMC decision is now the next major catalyst.
One important distinction: A 25 bps hike is strongly priced in, not officially confirmed. The possibility of a larger 50 bps move has also entered market pricing.
The market was hoping for inflation relief. Instead, it got another warning.
#CPI #Inflation #Bitcoin #Crypto #USMarkets
