The PPI data is out, and once again, it’s off the charts—by a significant margin too. Previous value: 5.4%, forecast: 5.3%, actual: 6.3%. And that’s the annual rate. The monthly rate more than tripled: previous value: 0.4%, forecast: 0.5%, actual: 1.3%. What’s even crazier is that retail data turned out unexpectedly strong, showing that the purchasing power of the American people and economic resilience are still holding up. Alright then, the Fed can confidently hike rates now, and we can all just call it a day. Most of the key data before the meeting has been released. The rise in oil prices driving inflation higher is now beyond doubt. However, the decline in labor force and retail data suggests that while the U.S. economy still has some resilience, it’s not exactly robust. There’s no sign of a recession in the short term, but the Fed might need to think this through. Yesterday, the CME showed a rate hike probability of around 55%. After today’s PPI release, it might hit 60%? Plus, if the Hormuz situation doesn’t get resolved, October’s inflation will definitely be higher than September’s. So, another rate hike in December? Right now, tech stocks and semiconductors are struggling a bit. Guess we’ll see you in 2028 for real. A shoutout to @Gate—trade more markets!