Fed Governor Waller sees December hike likely, opens door to possible half-point increase
Waller said a hotter inflation reading could justify a half-point increase, while markets now see a 98.8% chance of a December hike, CME Group said.
- Federal Reserve Governor Christopher Waller said Tuesday he would support a 0.25% interest-rate hike at the Dec. FOMC meeting, emphasizing the importance of policy follow-through to maintain Fed credibility regardless of upcoming inflation readings.
- Waller argued that failing to implement promised hikes would cause Markets to reduce expectations and loosen monetary policy undesirably, adding that higher rates "will be needed, sooner rather than later."
- Following the speech, Markets immediately repriced the probability of a Dec. quarter-point hike from 76.3% to 96.3%, per CME Group's FedWatch Tool, while investors expect the Oct Consumer Price Index to show a 0.3% monthly increase.
- Bitcoin fell 1.3% to $74,080 as traders reacted to higher borrowing cost prospects, while Nasdaq futures declined 0.4% ahead of the Wall Street open and the Labor Statistics inflation report.
- Chicago Fed President Austan Goolsbee cautioned on Monday that the Fed must prevent the economy from running too hot, noting that "because once it gets overheated, it's extremely painful to get rid of that kind of overheating.
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71 Articles
Lorie Logan signals faster tightening this winter, followed by pause to assess additional action
U.S. Federal Reserve Governor Christopher Waller mentioned the possibility of a "big step" to raise the benchmark interest rate by 0.5 percentage points this coming December. This suggests that if inflation does not subside easily, a larger rate hike than the 0.25 percentage points expected by the market may be necessary. According to the Fed on the 10th (local time), Governor Waller stated at a conference held in London, UK, that "October infla…
(New York = Yonhap News) Correspondent Kim Yeon-sook = U.S. Federal Reserve Governor Christopher Waller said in a speech on the 10th (local time) that the benchmark interest rate will be raised this coming December...
Wall Street thinks hot inflation data clinched a rate hike next month
Traders work on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE).Michael Nagle/Bloomberg via Getty ImagesMarkets were hit on Tuesday by new inflation fears after hot October CPI data. Stocks were slightly lower, but bond yields soared, with the 10-year Treasury yield up 13 basis points. Comments from a top Fed official hinted at a jumbo rate hike to combat inflation. Inflation was back in the picture on Tuesd…
Polymarket puts December Fed hike odds at 85% after hot CPI
Polymarket traders priced an 85% chance of a quarter-point Federal Reserve rate hike in December on Nov. 10, while bets on a larger move pushed the combined probability of tighter policy to about 97.7% after October’s hotter-than-expected inflation report. According…
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