Major brokerages expect next Fed rate hike in December
- Citigroup joins the December rate hike choir; 89.5% odds of the Grinch delivering a rate lump of coal.
- Powell's own staff can't agree on October vs December; 27% chance of a surprise spook-tacular hike.
- BofA plays renegade, betting on double hikes in Oct & Dec — the only house willing to poke the bond market bear.
- Core inflation still running hot, a sweaty gym sock in the Fed's fiscal sneaker — screaming 'higher for longer.'
- 10 of 12 brokers see one-and-done in Dec: because subtlety is the new panic.
Brief Summary
The Fed's crystal ball just got a collective polish from Wall Street's big-wig brokerages: they're almost all in on a December rate hike, because apparently beating inflation requires a grim holiday tradition. Citigroup joined the club after September's CPI data came in hotter than a jalapeño in a sauna, confirming that the 'transitory' inflation ghost refuses to leave the party.
Why This Matters
For the average reader, this is your wallet's winter forecast: get ready to pay more for your car loan, credit card, and maybe that dream house you've been peeking at online — the cost of borrowing is about to get sneakier. The Fed's hiking campaign is like that overly strict gym teacher forcing you to run extra laps for the class's sins; only this time, the class (economy) sweats in the form of pricier mortgages and business loans.