Rate hike expectations are soaring.
In a sudden turn of events, markets are now pricing in the possibility of a 50 basis point rate hike in December.
Market expectations for a 50 basis point hike have surged to 11%, while expectations for a 25 basis point hike stand at 84%.
It is no longer a matter of if the Fed will hike rates in December, but rather by how much.
Rate hike odds bumped higher. 📈
Following today's hotter-than-expected CPI print, market-implied odds for a 25 bps Fed hike on Oct 28 jumped to 33.2%, up from 22.1% the previous day and 17.7% last week according to CME FedWatch.