# Markets Price Three Fed Hikes From December 2026 to March 2027

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/57104
Published: 2026-11-14T00:58:53.000Z
Updated: 2026-11-14T00:58:53.000Z
Section: Investing

> October CPI rose 0.4% month over month, while the 12-month comparison was unavailable. Fed officials remain divided over the pace of further increases.

Market pricing points to 25-basis-point increases at Federal Reserve meetings in December 2026, January 2027 and March 2027, as inflation data and hawkish comments shape the policy outlook.

The October Consumer Price Index rose 0.4% from September, after a 0.6% monthly increase in September. Core CPI, which excludes food and energy, rose 0.3%, matching the increases in August and September. The 12-month CPI comparison for October was unavailable because October 2025 data had not been collected.

The October Producer Price Index rose 6.5% over 12 months, its largest 12-month increase since November 2022.

Before October’s CPI release, Fed Gov. Christopher J. Waller said officials should consider a 50-basis-point increase in December if the report resembled the prior two readings, with core CPI around 0.3% or higher. October core CPI later came in at 0.3%.

New York Fed President John C. Williams said inflation remains too high. Chicago Fed President Austan D. Goolsbee called the latest data concerning, while Dallas Fed President Lorie K. Logan said rates might need to rise faster than previously expected.

Boston Fed President Susan M. Collins said the direction of further tightening was clear but declined to prejudge the size or speed of rate increases. Bank of America expects increases at the next three meetings, while Santander forecasts increases in December and March.

The rising rate outlook has pushed Treasury yields higher. A weak housing market, the possibility that disappointing returns on artificial intelligence investment could weigh on stocks, and the prospect of lower energy prices are also considerations for Fed policy.