๐Ÿšจ๐Ÿ‡บ๐Ÿ‡ธ FED WARNING: SEPTEMBER RATE HIKE IS BACK ON THE TABLE
Fed Governor Christopher Waller says he would consider supporting a September interest rate hike if August inflation comes in strong.
Thatโ€™s a major shift in the market narrative.
Investors have been positioning around potential Fed easing.
Now the equation could change:
๐Ÿ”ฅ Hot inflation โ†’ fewer rate cuts
๐Ÿ“ˆ Higher-for-longer rates โ†’ stronger dollar
๐Ÿ“‰ Higher yields โ†’ pressure on risk assets
โ‚ฟ Crypto and stocks โ†’ potentially more volatility
The next inflation data could become a market-moving event.
One hotter-than-expected print could force traders to rapidly reprice the entire September Fed outlook.
The Fed may not be done fighting inflation.
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