Fed Expected to Extend Big Rate Hikes After New Inflation Surprise

Another scorching inflation data dashed hopes for a downturn before year's end.

 the Federal Reserve now appears on course to continue its aggressive interest-rate rises much longer than anticipated.

Investors increased their wagers that the Fed will raise rates by 75 basis points at its meetings next month and in December as a result of higher-than-expected readings on US core consumer prices.

Additionally, futures prices revealed for the first time that markets anticipate rates to be close to 5% in 2019.

The Fed is under a lot of pressure, according to Diane Swonk, chief economist at KPMG LLP.

According to her, the research suggests that the Fed will rise in its final two meetings of the year by three-quarters of a percentage point, making it five sessions in a row with an increase of that size.

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Inflation Data Calling the Shots as Market Correlations Snowball