Fed officials weigh bigger December rate hike after hot inflation data
The U.S. central bank, which sets interest rates, is debating whether to lift them by a quarter or half point at its next meeting.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
Federal Reserve officials are weighing a quarter-point or half-point interest rate increase at their December meeting. The debate follows a stronger-than-expected October jobs report and inflation figures that rose faster than forecasters anticipated. Market odds of the larger half-point increase climbed after the latest inflation data came in hotter than expected.
Why it matters
Rising prices point to the Fed raising borrowing costs before Christmas.
Timeline
- Nov 10, 5:41 AM ET: Fed Governor Christopher J. Waller signaled support for a quarter-point rate hike in December, with a half-point increase possible if October inflation stays elevated.
- Nov 10, 10:13 AM ET: Odds of a half-point Fed hike in December jumped after core consumer prices rose more than expected, meeting Waller's stated threshold.
- Nov 10, 3:02 PM ET: A high U.S. inflation report sealed the case for a rate increase, while policymakers continued to debate a 25- or 50-basis-point move for December.
Coverage
- High US inflation report seals Federal Reserve rate increase (The National)
- Fed to raise rates once more in December as inflation risks stay high: Reuters poll (sunherald.com)
- Hot U.S. inflation hasn’t cooled off. Rising consumer prices to keep Fed rate hike on track. (marketwatch.com)
- Federal Reserve’s Mary Daly Says More Rate Hikes Are Likely (rv-pro.com)
- Fed governor Waller backs December rate hike, floats larger move
- Odds of a half-point Fed hike rise after hot inflation data
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