The Fed Is Fighting Inflation Again. History Says Trouble, but This Time Might Be Different

There's a reasonable chance they could do it again later this month. But even if they don't, the market is pricing in multiple additional rate hikes in 2027. The labor market added just 29,000 jobs last month, continuing a streak of expansion and contraction over the past year. More concerning for the direction of rates is inflation . In September, the headline rate jumped 0. 6% month over month to an annualized 3. 7%. That kind of trend won't allow the Fed to ease monetary policy anytime soon. That creates a potential problem.