Fedwatcher Nick Timiraos is out with his latest view on the Fed and he says it remains on track to hike by 50 bps tomorrow, despite some light murmurs today about 25 bps. That's not a surprise but he talks how the recently slowing inflation data could 'complicate' deliberations over the terminal high and how quickly to get there.
"Tuesday’s inflation report is likely to intensify the officials’ debate over whether to further dial down the size of rate rises to a more traditional quarter percentage point at their subsequent gathering, Jan. 31-Feb. 1," he writes.
Interestingly, he makes no mention of a higher-for-longer scenario; which is something he's mentioned frequently before.
