If CPI surges again, will the Fed abandon its hopes for rate cuts? The market may be in for a change of tune in December!

Investors are still waiting for rate cuts, but the Fed may be preparing to give the market a reality check.
On November 10, U.S. October CPI is due to be released. If inflation comes in above market expectations again, expectations for a December rate hike may rise further.
The labor market was strong earlier, suggesting the U.S. economy still has some resilience. If employment holds up and inflation refuses to fall, the Fed will have little reason to rush into monetary easing.
What does this mean for markets?
First, the dollar may strengthen, tightening expectations for global liquidity. Second, Treasury yields may rise, putting pressure on tech stocks and high-valuation assets. BTC may also become volatile as risk appetite declines. Gold, meanwhile, will have to contend with the tug-of-war between interest-rate pressure and safe-haven demand.
That said, markets shouldn’t get too nervous. The Fed won’t decide all future policy based on a single CPI report; the composition of inflation and subsequent economic data matter too.
What’s truly worth watching is persistent inflation over several consecutive months, not an accidental jump in a single month’s figure.
The rate-cut story isn’t over yet, but rate hikes, that old familiar friend, seem to be making a comeback. #每周来晒 and #美国10月CPI即将公布 $NAS100