📝We Expect Another 25Bps Fed Hike In December: Nordea

US data has overall been stronger-than-expected since the Fed conference, most notably the labour data for August where employment growth exceeded estimates by 100,000 (while unemployment remained unchanged at 4.1%). Producer price data was more or less in line with estimates, momentum picked up while the year-on-year figure rose by 5.4% in August.

This would be well in line with price plans from the NFIB, which suggests further upside risks to inflation. Nordea’s call is that the Fed will hike in September and follow-up with an additional rate hike in December to 4.00-4.25%.

-Nordea