A post by @NickTimiraos on X.
There is now little doubt that the Fed will raise rates in December. After a third firm inflation report, the question is how fast: continue to take it one meeting at a time with 25? front-load with 50? signal the possibility of a faster…
@NickTimiraos on X
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A third consecutive firm inflation report has left little doubt the Federal Reserve will raise rates in December, with the debate now centered on the pace of tightening rather than the direction. WSJ reporter Nick Timiraos framed the choice as continuing a one-meeting-at-a-time approach with a 25-basis-point hike, front-loading with 50 basis points, or signaling a faster sequence of 25-basis-point moves. He noted that such tactical decisions historically get settled by the Fed chair, citing Greenspan's moves in August 1994 and May 2000 and Powell's 75-basis-point hike in June 2022. The commentary matters because it shapes expectations for the December policy meeting and the trajectory of rates into next year. What to watch next is whether Chair Powell uses upcoming communications to endorse a larger hike or a quicker cadence, which would reset market pricing for the terminal rate.
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Named in this story
Federal Reserve, Nick Timiraos, Jerome Powell, Alan Greenspan