Fed rate decision due today: market prices 92% odds of a hike to 3.75–4.00%
- —CME FedWatch puts the probability of a 25 bps hike to 3.75–4.00% at 92.3%
- —A month ago the market priced only a 36% chance — Warsh's comments and CPI were the trigger
- —Core inflation rose 0.3% month-on-month in August, while headline held at 3.4% year-on-year
- —Bitcoin fell below $76,000, with $545 million in long liquidations over 24 hours
Why it matters: The rate move is already priced in, so the reaction will come from the dot plot and Warsh's rhetoric on a December hike; key bitcoin support sits at $70,000.
Source: Cryptopolitan