Markets price in December Fed rate hike after October pause, Fidelis Capital says
TLT•Fidelis Capital Partners says markets price in a December rate hike, with FedWatch indicating a 72% probability of a 25-basis-point increase after the Fed held rates at 3.75% to 4% in October.
1. December hike outlook
Fidelis Capital Partners says markets are pricing in a December rate hike, with FedWatch indicating a 72% probability of a 25-basis-point increase. The Fed held rates at 3.75% to 4% on Oct. 27-28 in a 10-2 vote, and its next meeting is Dec. 8-9.
2. Fewer voting meetings
Voting meetings are set to decline to seven in 2027 and six in 2028, with no policy statements following non-voting meetings. The brief says reduced Fed transparency could increase market volatility, particularly if further rate hikes follow the October pause.
