Updated
Updated · Yahoo Finance · Nov 10
Fed Seen Raising Rates 25 Basis Points to 4.00%-4.25% in December
Updated
Updated · Yahoo Finance · Nov 10

Fed Seen Raising Rates 25 Basis Points to 4.00%-4.25% in December

3 articles · Updated · Yahoo Finance · Nov 10

Summary

  • All 101 economists in a Nov. 6-10 Reuters poll expect the Federal Reserve to lift the fed funds rate by 25 basis points in December to 4.00%-4.25%, after a September hike and October pause.
  • Inflation still above the Fed's 2% target, a strong labor market and resilient growth drove that view, with economists saying risks to the medium-term inflation outlook were largely unchanged after the midterm elections.
  • Fifty-six of 101 forecasters expect December to mark the end of the current tightening cycle, but 45 still see at least two more increases ahead, broadly matching market pricing.
  • If the consensus holds, the Fed's campaign would end after just two rate increases, making it the shortest U.S. rate-hiking cycle in more than a decade.

Insights

Could the Fed's potential December rate increase become the tipping point that abruptly ends the shortest tightening cycle in over a decade?
Will the Federal Reserve's expected December rate hike finally cool stubborn inflation, or trigger unexpected turbulence in an AI-driven economy?
As AI reshapes productivity and energy costs soar, is the Federal Reserve's traditional inflation target still realistic for today's evolving economy?