Reuters reported sterling was down 0.3% at $1.3395 on Nov. 10, as October core inflation matched the 0.3% level Federal Reserve Governor Christopher J. Waller cited for considering a larger December increase.
The Bureau of Labor Statistics (BLS) said its all-items consumer index climbed 0.4% over the month, down from September’s 0.6% rise. Prices excluding food and energy advanced 0.3%, the same monthly pace seen in August and September.
At the Bank of England Watchers Conference in London, Waller said he favored a quarter-point increase at the Federal Open Market Committee’s (FOMC) December meeting even if inflation eased. He said core inflation near or above 0.3% would put a half-point increase under consideration. Waller also warned that a 25-basis-point increase in that situation could put the Fed’s credibility at risk. He said his view was personal and did not necessarily represent his colleagues or the committee. “A 50 basis point hike in the policy rate should be considered at the December meeting,” Waller said.
Earlier in European trading, FXStreet reported the pound near $1.3430 after it gave back its early gains. The report was published at 4:38 a.m. ET (09:38 UTC). Reuters later put sterling at $1.3395 at 8:54 a.m. ET (13:54 UTC) and said Waller’s comments and U.S. inflation figures supported the dollar.
The UK has its own rate decision ahead. Bank of England Deputy Governor Clare Lombardelli told The Guardian a December increase was plausible, with market pricing roughly even. The Guardian reported that uncertainty over the Middle East conflict was contributing to delayed hiring, with young workers especially affected. The paper said youth unemployment had not been higher since 2015, except during the pandemic.
The BLS did not publish year-over-year changes for most CPI series, saying it had not collected October 2025 survey data during a lapse in appropriations. The FOMC is scheduled to meet Dec. 8-9. The next CPI release, covering November, is set for Dec. 10 at 8:30 a.m. ET.
