Hot October CPI lifts odds of December Fed hike, possibly 50bp
Bank of America says October's hotter-than-expected inflation makes a December hike almost certain and a 50bp move possible. Core CPI rose 0.3% for a third month.
What we know
Bank of America warned that October's hot CPI report makes a December Fed hike almost certain; it still expects 25bp but says a larger 50bp hike is now possible. Headline CPI rose 0.4% and core 0.3%, the third straight month at that pace. A crypto trader noted core is running at 3.7% annualized against a 2% target and that Fed's Waller had floated a 50bp hike if core hit 0.3%. Meanwhile, US mortgage applications rose 6.2% as the 30-year rate fell to 7.21%. ECB's Makhlouf said financing conditions have tightened after yields rose.
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