The Notion of Aggressively Dovish Fed Fades as U.S. Inflation Report Looms

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The Notion of Aggressively Dovish Fed Fades as U.S. Inflation Report Looms
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Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Traders are pricing in less than 50 basis points of Fed interest-rate cuts by year-end, down from 75 bps early last week.Though crucial, Thursday's U.S. inflation data may not cause tectonic shifts in the market.

The recent hawkish repricing of Fed rate expectations is also evident in Treasuries. Early Monday, the yield on the U.S. two-year note rose to 4%, the highest since Aug. 23, amounting to a cumulative gain of 50 basis points since Sept. 25. The 10-year Treasury note also tapped the 4% mark, data from charting platform TradingView show.

After the Fed cut rates on Sept. 18, BTC picked up a strong bid, rising over 10% to $66,500 by Sept. 27,All eyes are now on Thursday's U.S. September consumer price index data, according to QCP Capital.

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