Huatai Securities Says December Is Likely Next Fed Rate-Hike Debate Period

Huatai Securities said the Federal Reserve’s September rate hike has already been implemented, and December may be the next period for substantive debate over another hike. According to Odaily, the firm said market pricing puts the probability of an October hike above 50%, but it sees the need for an October increase as declining as fiscal stimulus eases, oil prices weigh more on household consumption, and tighter financial conditions cool labor and inflation data over the next one to two months. Huatai Securities said a December rate hike is its base case, while the Fed’s 2027 hiking path will depend on subsequent economic data, especially whether the labor market continues to improve, wage growth picks up, and inflation trends.