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Fed Governor Waller sees December hike likely, opens door to possible half-point increase
Waller said inflation remains too high and that a 50-basis-point move should be considered if price pressures stay elevated.
- U.S. stocks closed lower on Tuesday as hotter-than-expected inflation data hardened expectations for a Federal Reserve rate hike, with the S&P 500 losing 0.38% and the Nasdaq Composite falling 0.74%.
- Fed Governor Christopher Waller stated in London remarks that he would consider backing a 50 basis point rate hike in December if core inflation continues at 0.3% or higher, aiming to protect the central bank's credibility.
- The Consumer Price Index rose 0.3% in October, exceeding the 0.2% estimate, while the 10-year Treasury yield jumped 10 basis points to 4.98% and briefly surpassed 5% during trading.
- Markets are now fully pricing in at least 25 basis points at the Federal Reserve's December meeting, according to CME FedWatch, with expectations for a 50 basis point increase climbing to 11.8% from zero consideration previously.
- A more aggressive Fed could prove a significant headwind for equity markets next year, Chris Zaccarelli at Northlight Asset Management noted, while economists warn that "stubborn" inflation could jeopardize the outlook for 2027.
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The Fed Has to Raise Rates
“Officials at the Federal Reserve are in broad agreement that interest rates need to rise in order to tame inflation that continued to accelerate this year,” the New York Times reports. “Less settled is the pace of those increases and how aggressive the Fed will need to be in order to return inflation to its […]
·New York, United States
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As higher prices seep into broader economy, Fed officials consider faster hikes – WTOP News
WASHINGTON (AP) — More evidence this week of hot inflation in the U.S. was unpleasant news for the Federal Reserve, not to mention consumers: Rising prices may be spreading beyond the one-time shocks from tariffs and high gas prices into the wider economy, meaning that mortgages, credit cards and other forms of borrowing are likely...
·Chevy Chase, United States
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Coverage Details
Total News Sources141
Leaning Left6Leaning Right20Center29Last UpdatedBias Distribution53% Center
Bias Distribution
- 53% of the sources are Center
53% Center
11%
C 53%
R 36%
Factuality
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