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Markets See a December Fed Increase as More Likely Than an October Move

Earlier EconoTimes coverage put October hike odds at about 15% by Oct. 19. Goldman Sachs economist David Mericle sees possible quarter-point increases in December and March 2027.

Updated 1 min read
The Federal Reserve headquarters stands along Constitution Avenue in Washington, D.C. / TokenPost.ai (macro)
The Federal Reserve headquarters stands along Constitution Avenue in Washington, D.C. / TokenPost.ai (macro)

Markets are pricing a possible December Federal Reserve rate increase more firmly than an October move, putting the Oct. 28 decision in focus as investors assess inflation and energy-price risks.

An earlier EconoTimes story on October rate-hike odds put the chance of an increase at about 15% by Oct. 19. Some Fed officials have favored keeping rates steady as they monitor inflation and the possible energy-price effects of conflict in the Middle East.

One scenario from Goldman Sachs Chief U.S. Economist David Mericle puts quarter-point Fed increases in December and March 2027, at alternating meetings. The Fed will announce its next policy move on Oct. 28.

Afterward, investors will use the chair’s news conference to gauge how policymakers weigh inflation and financial conditions when considering additional tightening in 2027.

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