Schenker Sees Possible 50-Basis-Point Fed Hike in December

Jason Schenker, president of Prestige Economics, said the Federal Open Market Committee could consider a 50-basis-point rate hike in December, a move that could shape the Fed’s path into early next year.

Schenker said policymakers may give the effects of a September rate increase time to take hold before considering a larger move in December. A basis point is one-hundredth of a percentage point.

If the Fed makes the larger increase, Schenker expects it could pause further hikes early next year. The outlook is conditional on the committee’s December decision.