December rate hike: Federal Reserve outlook gains support – Commerzbank

Commerzbank Research expects a further 25 basis point rate rise. Strong October payrolls and persistently elevated inflation underpin its forecast for another Federal Reserve increase in December, at the upcoming FOMC meeting. Most Fed officials had already projected at least one more hike this year, the bank notes, and it considers recent data unlikely to shift that stance.

December hike forecast supported by strong data

"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.)