WS #16042
US wholesale prices jumped 6.3% annually in September, significantly overshooting expectations and marking the largest annual gain since 2022. This hot inflation print has forced markets to price in a 29% chance of an October Fed rate hike, reversing recent dovish bets. The shock has triggered a rally in Treasuries as yields spike, a sell-off in equities globally, and a sharp decline in Bitcoin as leveraged positions are liquidated. The data confirms the Fed's work is not done, dampening hopes for imminent monetary easing.
US Inflation Shock and Fed Hike Bets
US wholesale prices jumped 6.3% annually in September, significantly overshooting expectations and marking the largest annual gain since 2022. This hot inflation print has forced markets to price in a 29% chance of an October Fed rate hike, reversing recent dovish bets. The shock has triggered a rally in Treasuries as yields spike, a sell-off in equities globally, and a sharp decline in Bitcoin as leveraged positions are liquidated. The data confirms the Fed's work is not done, dampening hopes for imminent monetary easing.