The Most Important Inflation Report of the Year

Nik Bhatia analyzes the upcoming PPI and CPI data, labeling them the most critical economic releases ahead of the Federal Reserve's September 16 decision. The discussion covers how treasury bills have been pricing in rate hikes since May, the impact of Kevin Warsh's shift away from forward guidance, and the potential market implications of varying core CPI prints. Bhatia explains why he expects the Fed to hold rates steady, the potential effect of a hiking cycle on liquidity, and recommended resources for tracking the global balance sheet.