Jason Schenker, president of Prestige Economics, said that the FOMC may consider a larger interest rate hike of 50 basis points in December. The forecaster Schenker, who earlier predicted the Federal Reserve's latest rate hike, now believes that the Fed may “let the effects of the policy rest a bit” after raising interest rates in September, and then consider a larger rate hike in December. Schenker predicts that if there is a larger rate hike in December, further rate hikes may be suspended at the beginning of next year. Between the October and December meetings, Federal Reserve officials will also receive two employment reports and another CPI data to provide a basis for their future decisions. Schenker said, “Although it will only take 6 weeks, they will get more data. If they find that 25 basis points don't work, then I think they might launch a 50 basis point rate hike.” Schenker predicts that a larger rate hike may cause further interest rate hikes to be suspended at the beginning of next year; if interest rates are raised by only 25 basis points in December, it is more likely that interest rates will be raised again in the first quarter of next year.

Jason Schenker, president of Prestige Economics, said that the FOMC may consider a larger interest rate hike of 50 basis points in December. The forecaster Schenker, who earlier predicted the Federal Reserve's latest rate hike, now believes that the Fed may “let the effects of the policy rest a bit” after raising interest rates in September, and then consider a larger rate hike in December. Schenker predicts that if there is a larger rate hike in December, further rate hikes may be suspended at the beginning of next year. Between the October and December meetings, Federal Reserve officials will also receive two employment reports and another CPI data to provide a basis for their future decisions. Schenker said, “Although it will only take 6 weeks, they will get more data. If they find that 25 basis points don't work, then I think they might launch a 50 basis point rate hike.” Schenker predicts that a larger rate hike may cause further interest rate hikes to be suspended at the beginning of next year; if interest rates are raised by only 25 basis points in December, it is more likely that interest rates will be raised again in the first quarter of next year.