Hot October Inflation Revives Fed-Hike and Affordability Concerns

October CPI rose 0.4% month over month and core CPI 0.3%, prompting markets to price a December hike and some possibility of a half-point move. Dallas Fed President Lorie Logan advocated at least two more quarter-point increases, but neither her view nor market pricing is a Fed decision. Record new-car prices and rising household debt add to affordability concerns.