Inflation Surprise! Markets Swerve Wildly as Core CPI Rises at Fastest Pace Since 1982

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 14 October 2022

⏱️ 18 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, Circle and FTX US. Today’s release of the September inflation numbers surprised economists with a larger-than-expected growth in inflation – particularly in the core inflation data on which the U.S. Federal Reserve focuses its decision-making. On today’s episode, NLW explores what markets had expected, how they reacted and what it means for what comes next. - Nexo Pro allows you to trade on the spot and futures markets with a 50% discount on fees. You always get the best possible prices from all the available liquidity sources and can earn interest or borrow funds as you wait for your next trade. Get started today on pro.nexo.io. - FTX US is the safe, regulated way to buy Bitcoin, ETH, SOL and other digital assets. Trade crypto with up to 85% lower fees than top competitors and trade ETH and SOL NFTs with no gas fees and subsidized gas on withdrawals. Sign up at FTX.US today. - I.D.E.A.S. 2022 by CoinDesk facilitates capital flow and market growth by connecting the digital economy with traditional finance through the presenter’s mainstage, capital allocation meeting rooms and sponsor expo floor. Use code BREAKDOWN20 for 20% off the General Pass. Learn more and register at coindesk.com/ideas. Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsors today is “The Now” by Aaron Sprinkle and “The Life We Had” by Moments. Image credit: Cemile Bingol/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	Honestly, if you go read Bloomberg or Wall Street Journal's analysis of why stocks came roaring back,
0:05.6	it is so clear that no one has any idea.
0:08.7	And this ultimately is perhaps the perfect demonstration of markets right now.
0:13.3	It's one big Foxmolder desk sign that says, I want to believe,
0:17.9	despite the fact that there's just no evidence that the Fed is going to let up
0:21.8	any time soon.
0:24.7	Welcome back to The Breakdown with me, NLW.
0:28.9	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:34.7	The breakdown is sponsored by nexo.io, Circle, and FtX, and produced and distributed by
0:39.9	CoinDesk. What's going on, guys? It is Thursday, October 13th, and today is inflation day.
0:48.5	Before we get into what is just a wild and weird, strange moment in markets. If you are enjoying the breakdown, please go
0:55.5	subscribe to it, give it a rating, give it a review, or if you want to dive deeper into the
0:59.1	conversation, come join us on the Breakers Discord. You can find a link in the show notes or go
1:02.9	to bit.ly slash breakdown pod. Also a disclosure as always. In addition to them being a sponsor
1:08.3	of the show, I also work with FTX.
1:15.3	All right, folks, well, remember when just a couple of months ago there was a big dust-up because President Biden decided to focus on the zero percent month-over-month inflation number
1:20.3	that had come in to claim that inflation was at zero?
1:23.4	And remember how, even though lots of people poked fun at that clear politicking, markets were
1:28.1	more than happy to pile on to the narrative that inflation had peaked and so the Fed would be forced
1:32.1	to pivot. And remember how then the Fed said that they thought there would be more pain ahead
1:36.2	and we did this three or four times? Well, that was the setup heading into today's release of
1:41.4	the official September inflation numbers. Estimates for headline
	...

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