The WSJ leaker-in-chief, Nick Timiraos is out along with his post-CPI report and says it ‘seals the case’ for 75 foundation factors on November 2.
“The report additionally raises the danger officers will delay an anticipated slowdown within the tempo of charge rises after that or sign that they’re more likely to increase charges to even larger ranges early subsequent yr than beforehand anticipated by coverage makers and traders,” he writes.
The market is pricing in an 11% probability of 100 bps on November 2. The terminal high is priced at 4.92% now, suggesting an opportunity of the Fed going above 4.75-5.00% in Q1.
The US greenback is robust right now however hasn’t made new highs since instantly after the report.
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