Stocks, Bonds, & Bitcoin Battered As ‘Hot’ CPI Sparks Surge In Rate-Hike Odds

Well that was unexpected… Core CPI rose more than every one of the 60-plus Bloomberg economists expected, putting The Fed back in uber-hawk mode.

Rate-hike expectations spiked…

Sending stocks reeling lower…

And bond yields higher, led by the short-end…

And cryptos puked with Bitcoin back below $30k……

As Matt Maley, chief market strategist for Miller Tabak + Co., says: “Very simply, this high inflation number has dimmed the hopes for many investors considerably that we’ve reached peak inflation. Therefore, the Fed will remain hawkish and it just might put a 75 basis point hike back on the table.”

But yesterday we were told it was all priced-in?