Bank of America warns Fed could hike 50bps in December

BofA flags October's stronger-than-expected CPI—headline 0.4%, core 0.3%—as virtually guaranteeing a December rate hike and opening the door to a larger 50bps move instead of the expected 25bps. Core PCE now estimated at 3.3% YoY with price pressures broadening across goods and services. The bank warns the Fed is falling behind inflation; next decisive releases are jobless claims and PPI data on 12–13 November.