Hot US inflation raises odds of half-point Fed hike in December
Summary
US CPI rose 0.4% in October, above the 0.3% forecast, while core inflation increased 0.3%, also exceeding expectations. Fed Governor Christopher Waller said another elevated core reading could justify considering a 50-basis-point December hike. Markets priced an 88.3% chance of a quarter-point increase and an 11.7% chance of a half-point move. Crypto markets fell after the data: total market capitalization dropped 1.6%, while Bitcoin, Ether and Solana declined. Analysts said higher rates could weigh on leveraged crypto investors and reduce returns from borrowing-based strategies, making lower-risk traditional investments more attractive.
