Bitcoin Investors Now Have the Full Picture Before the Fed’s Move: Here’s What It Says

The final major inflation report before next week’s highly anticipated Federal Reserve meeting went live on Friday and built on an already complicated economic picture, showing strong employment, sticky inflation, and $100 oil prices.

Rate-hike expectations have skyrocketed over the past couple of weeks, which could spell trouble for risk-on assets like bitcoin.

All Data Is In

According to the analysts at the Kobeissi Letter, the US central bank now has all the pieces of the puzzle as essentially all important economic data came out in the past few weeks before the key September 15-16 FOMC meeting. And the combination leans hawkish.

The jobs report from a few weeks ago showed that the US economy had added 162,000 jobs in August, nearly triple expectations, signaling that the labor market remains a lot stronger than anticipated and is likely to withstand tighter monetary policy. Then came the PPI data, showing that producer inflation surged to 5.4%, up from 4.8% in July. Other PPI components fed into the Fed’s preferred PCE inflation gauge also strengthened.

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