JoAnne Bianco, senior investment strategist at BondBloxx Investment Management Corporation, said slower consumer demand or tighter financial conditions could weaken expectations for a December Federal Reserve rate increase.
Bianco also pointed to softer labor-market data as a factor that could change the outlook. Money markets had priced the possibility of a 25-basis-point increase in December.
Financial conditions have also figured in the wider debate over Fed policy. Musalem, who has argued for earlier tightening, identified a sudden tightening in financial conditions as one development that could ease inflation without further policy firming, as EconoTimes previously reported.
The Federal Reserve’s next scheduled policy meeting is Dec. 8–9.
