It's never just one: Focus now shifts to October Fed meeting
Assuming this morning’s inflation data means a 25 basis point Fed rate hike is a sure thing at next week’s meeting, wouldn’t that mean that another rate hike at the Fed’s subsequent meeting on October 28?
Given the continued surge in energy prices since the August CPI data was collected, it’s hard to imagine that there will be any improvement in the inflation numbers prior to that October meeting.
If the reasoning of Fed Chair Kevin Warsh and the central bank hawks remains consistent, that would surely point to another round of tightening.
Indeed, that’s where the action has been in fixed income on Friday, with October rate hike odds jumping to 42% from just 27% one day ago, per CME FedWatch .
The two-year Treasury yield Friday afternoon has soared a full eight basis points to 4.63%, its highest level in more than two years.
Stocks are fine with it all, the Nasdaq, S&P 500, and DJIA all higher by more than 1%. Higher earlier, bitcoin has shed its gains, now trading at $77,0000, flat over the past 24 hours.
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