⚡️🇺🇸 #Macro USA. Consumer Inflation (#CPI ) Data for August is here!
- Month-over-month: 0.2% (in line with projections)
- Year-over-year: 2.5% (matching forecasts, down from 2.9%)
The cooling year-over-year inflation suggests that the Fed's tightening measures are working, bringing some relief to consumers and businesses. However, steady month-over-month data indicates inflation isn't completely under control yet.
Impact on the market:
- **Stocks:** Likely to rally as cooling inflation could signal a pause in future rate hikes, which would be bullish for equities. 📈
- **Bonds:** Bond yields might see some downward pressure as the market anticipates fewer rate hikes, making bonds more attractive. 💼
- **Crypto:** Positive sentiment could spill over into risk assets like Bitcoin, with reduced inflation easing concerns about aggressive monetary tightening. 💡
What’s your take? Will the Fed hold steady, or is another rate hike around the corner?