Will the Federal Reserve raise interest rates by 50 basis points in December?
Bank of America warns that a 50-basis-point rate hike—double the usual increase—is possible if inflation continues to surprise on the upside.
Key indicators:
Core inflation rose by 0.3% in October.
Consumer prices rose by 0.4%.
Core inflation, as measured by the PCE index, is estimated to reach 3.3%.
Continued monetary tightening could put more pressure on high-risk assets, including stocks and cryptocurrencies.
However, falling oil prices could ease inflationary pressures in the coming period.
The key question: Is the market preparing for a new wave of monetary tightening?
Bank of America warns that a 50-basis-point rate hike—double the usual increase—is possible if inflation continues to surprise on the upside.
Key indicators:
Core inflation rose by 0.3% in October.
Consumer prices rose by 0.4%.
Core inflation, as measured by the PCE index, is estimated to reach 3.3%.
Continued monetary tightening could put more pressure on high-risk assets, including stocks and cryptocurrencies.
However, falling oil prices could ease inflationary pressures in the coming period.
The key question: Is the market preparing for a new wave of monetary tightening?
