Is the Fed About to Hike Again? My Take on NFP & CPI #CPIWatch
Non-Farm Payrolls just beat expectations, showing the US labor market is still super hot. This gives the Fed more room to stay hawkish.
Now all eyes are on CPI. If CPI comes in even 0.1% hotter than expected, the probability of another rate hike will skyrocket. The Fed cannot risk inflation coming back.
My view: I'm slightly bullish on USD and Gold short-term. I expect the Fed to HOLD rates this time but with a very hawkish statement. This could cause a short-term correction in BTC and alts, followed by a strong bounce once fear fades.