PPI comes in at more than double the forecast, yet markets bet the Fed will hold in October
September PPI jumped 1.3% month over month, the largest increase since March 2022. The expectation, the forecast, 0.6%. It was more than double the forecast. How can you have PCE soft last week and then markets get excited and then you have CPI hot and PPI? And then you read the articles about PPI and they’re saying that the next PCE reading will be extremely hot because PPI just came in hot. We know that they recalculated PCE last week, the way that they actually come up with it. And that magically came in soft. But now CPI and PPI are hot. Which number are we supposed to believe? Hot PPI and CPI should mean that the Fed’s going to hike, right? To cool inflation. Fed hike odds crash from 55% to 13%. Warsh made some vague comments. He’s famously bad at giving you any sort of clarity. And the prediction markets believed him and not the numbers. Listen, just buy Bitcoin. Bitcoin opt out of all this entirely because it has become complete and utter nonsense.
#Fed #Inflation
Powered by WPeMatico
