#FedHikeOutlookDivided
On Oct 30, St. Louis Fed President Musalem said further tightening would soon be needed to curb inflation. Dallas Fed President Logan called for at least two more 25 bps hikes. Despite hawkish signals, market pricing for a December hike eased from ~85% to 70%-80%. September core PCE rose to 3.1% YoY, keeping inflation in focus. With officials’ views and market expectations diverging, October’s jobs report, due Nov 6, will help shape the rate outlook.
