A Fed rate hike in December is pretty much a sure thing now: CME puts the odds at 95%. Waller made his position clear today: he supports a 25-basis-point hike in December, but if core CPI is still hovering around 0.3% month over month tonight, he thinks they should consider a 50-basis-point move.
It all comes down to the number at 9:30 tonight. Core CPI has been in the 0.3% range for the past two months, and the market has already priced in 25 basis points. What’s really making people nervous is the possibility of 50. Nasdaq futures are slightly in the red right now, and no one wants to make a move before the data comes out.
It all comes down to the number at 9:30 tonight. Core CPI has been in the 0.3% range for the past two months, and the market has already priced in 25 basis points. What’s really making people nervous is the possibility of 50. Nasdaq futures are slightly in the red right now, and no one wants to make a move before the data comes out.