WSJ's Timiraos writes "October’s firm inflation reading raises the question of whether Federal Reserve officials will accelerate increases at their December meeting or beyond."
ORIGINAL · NewsquawkWSJ's Timiraos writes "October’s firm inflation reading raises the question of whether Federal Reserve officials will accelerate increases at their December meeting or beyond."Read originalHide original
"A big question—beyond the heavy focus on December (could AI tightening prompt another skip? does 0.4% on core PCE put a 50 in play?)—has been whether the Fed is making a modest adjustment of two or three increases or is instead at the start of a longer tightening campaign. A milder reading might have opened a path for December’s increase to be the Fed’s last. At a minimum, today’s report is likely to lead officials to conclude that they will need to do more next year, not less."
Timiraos raised a question about faster Fed increases; later reports detailed October inflation and Waller’s conditional case for a larger December move, not a policy decision.
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"A big question—beyond the heavy focus on December (could AI tightening prompt another skip? does 0.4% on core PCE put a 50 in play?)—has been whether the Fed is making a modest adjustment of two or three increases or is instead at the start of a longer tightening campaign. A milder reading might have opened a path for December’s increase to be the Fed’s last. At a minimum, today’s report is likely to lead officials to conclude that they will need to do more next year, not less."
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