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Macro

Forecaster Schenker: Fed Could Hike 50 Basis Points in December

Prestige Economics president Jason Schenker said the FOMC may consider a larger 50 basis point rate hike in December. Schenker, who predicted the Fed’s most recent increase early, expects the central bank to let policy effects settle after a September hike before weighing a bigger move in December. He said a larger December hike could be followed by a pause in further increases early next year.

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AI take

Schenker's call matters less as a forecast than as a marker of how the December meeting is being framed: a bigger move now, then a pause, rather than a long series of small steps. That sequencing, if it gains traction, changes the term-structure conversation more than the near-term rate path itself. The open question is whether this becomes a broader view among Fed watchers or stays a minority read. His recent track record gives the claim weight, but it is still one forecaster's expectation, not guidance.

Generated by AI for reference only.

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