Today's CPI report showed that headling inflation dipped a little bit but core inflation hit a 40 year high. The net result? The Fed will keep tightening.
Markets immediately moved in the direction of their previous trends. Stocks down, Gold down. Dollar up.
The market will now look for more hikes in the future from the Fed.
But the Fed tightening will lead to a deeper recession in the coming year. Look for signs of a financial crisis to develop next year. In a way, financial crises are lagging indicators of Fed policy.