With The Merge In The Rear View, What's Next?

📊 Macro Back In Vogue?

As we cautioned last week, the August 2022 CPI print on September 13th would likely prove to be a volatile event for asset markets in either direction. As it turned out, August CPI rose to 8.3%, coming in much worse than many people have been expecting. This resulted in a violent sell-off across asset markets, with crypto being no exception.

• Headline CPI surprised market expectations with an increase while many were expecting a decline. Core CPI numbers also doubled what many economic forecasters had been expecting.
• Another warning sign appeared in rental inflation and services, as both accelerated to posting their largest monthly increase to date.
• An area where many were expecting to see substantial declines in inflation was used vehicles. Again, defying market expectations, used vehicle inflation barely edged lower at all.
• In the past, we have mentioned that hig