A post by @NickTimiraos on X.
There is no 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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Fed rate expectations for December firmed after a third consecutive strong inflation report, with WSJ reporter Nick Timiraos saying a hike is all but certain and the open question is pace: another 25 basis points, a front-loaded 50 bp, or guidance toward a faster sequence of 25 bp moves. He noted such tactical decisions are typically settled by the chair, citing Greenspan in August 1994 and May 2000 and Powell's 75 bp move in June 2022. The debate matters because the size of the December step will shape how quickly policy tightens into a still-firm inflation backdrop. Traders will watch incoming inflation and labor data along with Fed communications for signals on whether the committee front-loads or stays gradual.
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Named in this story
Federal Reserve, Nick Timiraos, Jerome Powell, Alan Greenspan