Fed's Waller Backs December Rate Hike, Putting 50 Basis Points on the Table

Financial markets are pricing in renewed Federal Reserve tightening after Governor Christopher Waller supported an interest rate increase at the December FOMC meeting, saying a 50-basis-point hike should be evaluated if October core CPI rises 0.3% or more. Waller stated in London that he backs at least a 25-basis-point hike to 4.00%-4.25% even if forthcoming inflation figures show improvement. The hawkish stance pushed December hike odds as high as 96% to 99%, lifted the 2-year Treasury yield by 4 basis points to 4.616%, and dragged Bitcoin down toward $74,000.