đ The newly released October CPI report has officially poured cold water on expectations of Fed easing, pushing the 10-year U.S. Treasury yield back above the key psychological level of 5.00%.
- Headline CPI rose 0.4% month over month in October, higher than the 0.3% forecast
- Core CPI rose 0.3% from the previous month, exceeding the consensus estimate of 0.2%
- Pressure is believed to have come from electricity prices (+0.9%), energy (+0.7%), and food (+0.5%)
â ď¸ Immediately after the report, the odds of the Fed raising rates by another 25 basis points this December climbed to 90.9%, making a hike at the next meeting almost certain.
đ So at this point, the question is no longer whether the Fed will raise rates, but by how many basis points?
- Headline CPI rose 0.4% month over month in October, higher than the 0.3% forecast
- Core CPI rose 0.3% from the previous month, exceeding the consensus estimate of 0.2%
- Pressure is believed to have come from electricity prices (+0.9%), energy (+0.7%), and food (+0.5%)
â ď¸ Immediately after the report, the odds of the Fed raising rates by another 25 basis points this December climbed to 90.9%, making a hike at the next meeting almost certain.
đ So at this point, the question is no longer whether the Fed will raise rates, but by how many basis points?
