Analysts Predict Hawkish Rate Hike by the Federal Reserve in December

David Rosenberg, head of Rosenberg Research, believes that the Federal Reserve's stance will become more hawkish. He pointed out that the Fed is still grappling with out-of-control inflation following the COVID-19 pandemic, which will influence its policy decisions. Rosenberg stated that the Fed is uneasy about its failure to accurately judge inflation as transitory during 2021-2022. Considering the Fed's focus on the lagging effects of energy prices on other components of the CPI and its emphasis on broad measures of inflation, it is expected that the Fed will take hawkish rate hike actions at the meeting on December 9.