The September Consumer Price Index (CPI) is next and comes out on October 14. It remains one of the most watched macro releases for risk assets. An upside surprise has historically strengthened the case for tighter monetary policy, while a softer reading could produce the opposite reaction.
A day later comes another crucial inflation data point, with the release of the September Producer Price Index (PPI). The report measures price changes from the perspective of domestic producers and can offer additional evidence about underlying inflationary pressures.
The September retail sales will also be announced on that day, making it a particularly important date. Strong consumer spending could reinforce the idea that the US economy remains resilient despite restrictive monetary conditions, and vice versa.
Fed Into Focus
The single biggest event of the month arrives on October 28 when the Federal Reserve will conclude its two-day FOMC meeting, with the policy statement due at 2:00 p.m. ET and Chair Kevin Warsh’s press conference scheduled half an hour later.
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The combination has quite obvious implications for risk on assets like bitcoin. Beyond the rate decision itself, which could be priced in by then, markets will be watching Warsh’s language for any clues about whether the central bank believes further tightening is necessary.
However, only a day after investors digest the Fed’s decision, the US will publish two highly important reports: the advance estimate of third-quarter GDP and September Personal Income and Outlays, which includes the Fed’s preferred PCE inflation gauge.
The timing makes the final week of the month particularly important. The September PCE reading will arrive too late to influence October’s FOMC decision itself, but it could immediately reshape expectations for the central bank’s final meeting of the year.
Separately, October is BTC’s greenest month historically, which could lead to additional volatility and possibly gains, even though, as we know, history is no indication of future price performance.