Published on: 2023-11-01 Updated on: 2023-11-02
The Fed's Nov meeting
02 Nov 2023
Previous(Sep):5.50% | Forecast:5.50%
In a bid to stamp out the highest inflation in four decades, the Fed have made 11 interest rate hikes since March 2022 before a pause in Sep. But Powell is yet convinced that inflation fight is over.
The consumer price index increased 3.7% in September from a year ago, still nearly double the Fed's 2% target. Surprisingly strong retail sales and tight job market continue to signal “higher for longer” path.
The CME 'Fed Watch' tool shows markets are pricing a 26% probability of another 25bps hike in Dec. Top Fed officials indicated that rising yields could substitute for further tightening.