Chung Wu Investment Group expects 25-basis-point Fed hike in December as hiring stays strong
TLT•Chung Wu Investment Group expects the Federal Reserve to raise rates by 25 basis points in December and hold them steady throughout 2027. Professional and business services employment rose by 70,000 in October, versus average monthly gains of about 15,000 over the prior year.
1. Hiring and rate outlook
The Federal Reserve is expected to raise the federal funds rate by 25 basis points in December, then hold steady throughout 2027. Professional and business services employment increased by 70,000 jobs in October, compared with average monthly gains of roughly 15,000 over the previous year. AI investment and data-center construction are supporting economic growth, but the benefits remain concentrated in investment activity and asset ownership. Investors face uncertainty over whether investment-led growth can offset tighter monetary policy and uneven consumer confidence in 2027.
