BeiChen Lin, senior investment strategist at Russell Investments, said in a note
that October US CPI, even a slight upside surprise, could make a Fed rate hike
in December all but certain. Strong employment and other signs of economic
resilience reduce the Fed’s tolerance for inflation. Beyond the headline print,
the breadth of inflationary pressures will be critical to the future policy
path. Elevated mortgage rates are weighing on the housing market, which should
help dampen some inflationary pressure.
