Fed Chair Jerome Powell.
Investors pushed up expectations that the Federal Reserve at its December meeting will deliver another rate hike of 75 basis points.
The odds for another three-quarter point increase jumped to 61.8% from 32.5% a day ago.
The move came after September core inflation rose to 6.6%, which marked a 40-year high.
US core inflation in September rose by more than economists had anticipated, spurring investors on Thursday to bump up their expectations that the Federal Reserve at its December meeting will deliver yet another big rate hike.
The CME FedWatch tool showed a 61.8% probability of a rate increase of 75 basis points at the central bank’s December 13-14 meeting, up from 32.5% a day earlier.
At the same time, the odds of a rate increase of 50 basis points fell to 36.9% from 58% a day prior. The probability of a 100-basis-point rate hike edged up to 1.4% from 0% over the past month.
The inflation report also cemented expectations for the Fed to raise…
This article was written by [email protected] (Carla Mozée) and originally published on markets.businessinsider.com