The Bureau of Labor Statistics released U.S. inflation data for August on Tuesday. While the expected number revolved around 8.1%, the actual released number stood much higher—8.3%. The same has increased the odds of the Fed implementing a 75 bps interest rate hike. Per Ritika Chhabra, Economist and Quant Analyst at Prabhudas Lilladher,
“With inflation being ‘stickier’ than expected, it is highly likely that the Fed will go for another jumbo rate hike of 75 bps in its next FOMC meeting on 21st September.”
Owing to the said pessimistic sentiment, most markets traded in red on Tuesday. Even at press time, they were struggling to recover. The crypto market lost an aggregate 6% value over the past 24-hours, with Bitcoin and Ethereum dropping by 8% and 6% respectively. Stocks of crypto associated companies like Coinbase and MicroStrategy had also taken a hit.
35.556 SRY