Fed rate calculations changed: 88 percent probability for December

US October inflation came in above expectations, prompting markets to sharply raise the odds of another Federal Reserve rate hike at the December meeting. CME FedWatch data now show 88% of investors pricing a 25 basis-point increase, with a 50 basis-point move also under discussion. The shift matters because it signals that tighter monetary policy could extend into next year, keeping borrowing costs elevated across the economy. Investors will watch the Fed's December decision and incoming inflation and labor data for confirmation of the policy path.