Fed rate hike seen more likely after inflation data
TLT•Traders raised the implied chance of a Federal Reserve rate hike at its October 27-28 meeting to around 40% from about 22% after consumer inflation rose 3.7%, faster than expected.
1. Rate hike odds rise
Traders priced in about a 40% chance of a Federal Reserve rate hike at its October 27-28 meeting after Labor Department data showed consumer inflation rose 3.7% last month, faster than expected. The implied probability had been around 22%; underlying inflation also rose faster than economists had anticipated.
