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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.

US inflation (CPI, year on year)
3.7% +0.40 pts · 3 yr
2.3%3.3%4.2%1 Dec 231 Apr 251 Sep 26
Monthly data. Source: FRED, St. Louis Fed.

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.

What people are posting

Posts on X this story draws on. They are individual users' views and have not been verified by Global Eye 24.

@DeItaone

“BANK OF AMERICA WARNS FED COULD DELIVER 50BPS HIKE IN DECEMBER”

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@Kylechasse

“Core CPI hit 0.3% for the THIRD straight month.”

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By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.