Hot inflation numbers and rising oil prices are pushing the Fed toward more rate hikes, which is bad news for stocks and crypto.

• Wholesale inflation (PPI) came in hot, driven largely by rising oil prices feeding into trucking and freight costs.
• A Fed official warned hikes are likely needed, and markets now expect several hikes over the next year, way more than they expected just last week.
• Oil prices are climbing again because the Iran conflict shows no sign of ending, with Trump reportedly telling aides he sees no urgency for a deal now that the election is over.
• Bitcoin dropped below $70,000 and bond yields ticked up as markets priced in a tougher Fed stance.
• Treasury Secretary Besson publicly blamed Commerce Secretary Lutnik for letting chip export controls fail, and admitted trade deals with Mexico and Canada are still not done over a year after they were promised.

Outlook: Unless the Iran conflict cools down and inflation eases, expect more rate hikes, higher oil prices, and continued pressure on stocks and Bitcoin in the near term.