U.S. inflation came in hotter than expected in October, strengthening expectations for another Federal Reserve interest rate hike in December. In today’s Corpay Market Update on FINTECH.TV, host Remy Blaire examines the latest consumer price data, with core inflation rising 0.3% month over month against a 0.2% forecast, while headline inflation climbed 0.4%.
Federal Reserve Governor Chris Waller is leaning toward a 25 basis point rate hike in December but has warned that persistent inflation could justify a larger 50 basis point increase. Remy Blaire explores how financial markets are pricing in these possibilities, with rising rate expectations supporting the U.S. dollar against major global currencies.
The update also examines the broader forces shaping the inflation outlook, including declining oil prices, reduced tariff risks, political developments following the U.S. midterm elections, and a slowdown in artificial intelligence infrastructure investment. With inflation pressures remaining elevated, the discussion highlights what these developments could mean for Federal Reserve policy, currency markets, and the near-term direction of the U.S. dollar.