The market isn’t scared of one rate hike
It’s scared that rate hikes are back on the table
Warsh’s Jackson Hole speech came in clearly hawkish on inflation, pushing September hike odds from roughly 35% to 60%
Yields reacted
Risk assets followed
BTC and Nasdaq don’t suddenly have a broken thesis
The market is simply repricing the cost of money
Now the jobs and inflation data have the next word
It’s scared that rate hikes are back on the table
Warsh’s Jackson Hole speech came in clearly hawkish on inflation, pushing September hike odds from roughly 35% to 60%
Yields reacted
Risk assets followed
BTC and Nasdaq don’t suddenly have a broken thesis
The market is simply repricing the cost of money
Now the jobs and inflation data have the next word