Economist: Market Overstates Risk of a 50 Basis Point Fed Rate Hike in December

Odaily News: Stronger-than-expected U.S. inflation data has sparked speculation about a 50 basis point rate hike by the Federal Reserve in December. However, Seiji Katsurahata, an economist at Daiichi Life Research Institute, said such expectations are overdone. U.S. Treasury yields face upward pressure in the near term, driving the dollar stronger and capping gains in U.S. stocks. Nevertheless, as market expectations eventually stabilize at a 25 basis point hike, short-term Treasury yields should return to normal, and the dollar's upside may be limited. (Jinshi)