Fed rate hike seen more likely
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Fed Vice Chair for Supervision Michelle Bowman (voter) said that inflation remains above target but added that following the recent rate increase, there is no need to rush to move rates higher and that the FOMC can wait for more information.
The consumer price index for September showed a bigger-than-expected increase in core prices, helping keep alive the chance of an Oct. 28 Federal Reserve rate hike. S&P 500 futures turned lower while Treasury yields jumped after the CPI inflation data.
There have been a host of reactions to the hot September CPI numbers released Oct. 14 across the U.S. economy, from the spiking 10-year Treasury yield to traders surging the probability of a Fed rate hike to 32.7% at its Oct. 27-28 meeting to new questions around the sustainable run rate for AI models.
Learn how inflation and the latest inflation report affect mortgage rates. By watching inflation, you'll get a clue where interest rates are headed.