Fed May Hike Again at October 28 Meeting as Inflation Fears Rise

Following a 0.50% rate increase in mid-September, analysts now view an October 28 Federal Reserve meeting as a possible venue for another hike if inflation remains elevated. The September CPI print has shifted rate expectations.

Capital Economics' Stephen Brown forecasts two more 25 basis point hikes with upside risk. Markets had not fully priced in an October hike scenario until the CPI release confirmed broader price pressures.

Key data points awaited this week include PPI, Retail Sales and Initial Jobless Claims, which will test whether inflation is broadening beyond energy or remaining concentrated there. The Fed's next decision is October 28; any further supply shocks or wage data surprises could influence the committee's stance.