Federal Reserve: December rate hike outlook gains support – Commerzbank

Expectations of another Federal Reserve rate hike in December remain supported by robust October payrolls and persistently elevated inflation, according to Commerzbank Research. With most Fed officials having already projected at least one additional increase this year, the bank believes the latest data are unlikely to shift their position. Commerzbank Research expects the policy rate to rise by a further 25 basis points at the forthcoming FOMC meeting.

Do strong data reinforce the case for a December rate hike?

"The report reinforces our view that the Federal Reserve will raise rates again in December because of inflation risks."

"Of the 18 Fed officials who submitted projections for the appropriate path of interest rates in September, 16 anticipated at least one more rate hike this year. The data released since then are unlikely to have changed that assessment materially."

"Following October's pause in rate hikes, attention now turns to the Federal Open Market Committee's December meeting. Today's figures reinforce our view that the Fed will raise its policy rate by another 25 basis points at that meeting."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)