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2026-11-11T21:53:50.927Z

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Fed Hike Seen in December

Fed Hike Seen in December

Bank of America expects the Federal Reserve to raise interest rates in December, following a 0.4% monthly rise in U.S. inflation in October and a 0.3% increase in core inflation. It estimates core inflation, as measured by personal consumption expenditures (PCE), at 3.3% year over year. The bank maintains its baseline forecast of a 25-basis-point increase, but says hawkish remarks and persistent price pressures could open the door to a 50-basis-point hike. The risk of another rate increase in January has also risen.

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