Why CPI Will Move Equities & Yields, Fed Readies for Interest Rate Meeting

• The Fed is expected to hike rates at its next meeting, with high probabilities for further hikes into early next year.
• Historically, fast-paced Fed hiking cycles have been associated with weaker equity market performance over the subsequent 6-12 months.
• CPI and PPI data are crucial for market movement, as they influence the Fed's preferred PCE measure and the 10-year yield, which has an inverse correlation with the equity market.

The discussion centers on the Federal Reserve's upcoming interest rate meeting, with a strong expectation for a hike. Liz Ann Sonders highlights that fast hiking cycles historically lead to weaker equity market performance. The focus is on inflation data (CPI, PPI) and the 10-year yield as key drivers for market direction, with a cautious outlook for equities if rapid hikes continue.