TREE NEWS reports: US core CPI rose 0.3% month-on-month in October, exceeding expectations and sharply raising odds of a 50-basis-point Federal Reserve rate hike in December. Fed Governor Waller said rates should rise 50bp in December if inflation stays high, calling for reversing the three prior “precautionary cuts.” Nasdaq 100 futures fell 1.5% premarket, gold dropped and Brent crude broke above $90 a barrel for the first time since August.
US October core CPI rises 0.3% m/m, topping forecasts; Fed’s Waller signals 50bp December hike
The significance here is less the CPI surprise itself than Waller explicitly framing December as a reversal of prior cuts — that reframes policy from easing bias to possible re-tightening, a harder signal for duration-sensitive crypto and RWA yield curves than a single hot print. The cross-asset reaction is telling: equities and gold down while Brent breaks higher suggests markets are pricing a stagflationary mix, not a clean risk-off. Whether Waller's call gains broader FOMC support, and whether energy strength feeds into future core prints, is the open question.
Generated by AI for reference only.
Share on WeChat
Open WeChat → Scan → then tap "…" to send to a chat or Moments.
Tap "…" in the top-right corner to send to a chat or share to Moments.