Federal Reserve: December rate hike view reinforced – Commerzbank
Commerzbank Research argues that strong October payrolls and still‑elevated inflation back expectations for another Federal Reserve rate increase in December. The bank highlights that most Fed officials already projected at least one more hike this year, and sees recent data as unlikely to alter that stance. It anticipates a further 25 basis point rise in the policy rate at the upcoming FOMC…
Commerzbank Research maintains the view that the Federal Reserve will raise interest rates again in December, citing strong October employment figures and persistent inflation as backing for another hike. Most Federal Reserve officials already projected at least one more rate increase this year, and the recent data is unlikely to alter that stance.
The bank anticipates a 25 basis point increase in the policy rate at the upcoming FOMC meeting. Out of 18 Fed officials who submitted projections in September, 16 expected at least one more hike this year. The data since then has not significantly changed that assessment. Following the pause in rate hikes since October, market attention now focuses on the December FOMC meeting.
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