It's a new month, and the Federal Reserve's second-to-last meeting of the year is on tap to take place this week. Many investors expect another jumbo-size rate hike this time around, which has become the norm for just about every Federal Reserve Board meeting since June.
But over the last several weeks, the market seems to have shifted its expectations regarding inflation and what it thinks is the Fed's trajectory. It wasn't too long ago when a small percentage of market participants thought the Fed might have to do a full 1 percentage-point rate hike at one of its meetings this year to get the highest inflation rate in 40 years back under control.
Now, there is increasing chatter that there could soon be a Fed pivot to smaller rate hikes and that inflation may be starting to ease faster than expected. Which prognosticators have it right? Let's take a look.
Source Fool.com