CPI takes the stage tonight! If inflation blows past expectations again, the Fed may have to teach markets a “rate-hike lesson” in December

The US October CPI report is about to be released, and global financial markets are once again facing a collective test.
What markets fear most is not high inflation, but inflation that should be cooling yet refuses to cooperate. If the data comes in above expectations again, bets on a Fed rate hike in December may grow stronger.
Strong employment data has already given the Fed more reason to maintain its tight monetary policy. Markets are now pricing in a fairly aggressive December rate hike, with some indicators showing the probability of a 25-basis-point hike nearing 80%.
If CPI remains hot, the Fed may have no choice but to keep playing the unpopular role of interest-rate cop.
For markets, this means the dollar could strengthen, Treasury yields could rise, and risk assets could come under pressure.
Of course, expectations of a rate hike do not mean an actual hike. What will really determine market direction is whether core inflation continues to cool.
Tonight, the market just wants to hear one thing: Inflation, when are you finally going to clock out? #每周来晒 and #美国10月CPI即将公布 $SPCX