Former Fed Vice Chair Richard Clarida: We expect one more rate hike at the December meeting

The Federal Reserve is expected to maintain current interest rates in its upcoming meeting while signaling a likely hike in December. Rich Clarida, PIMCO Global Economic Advisor and former Fed Vice Chair, observes that despite disappointing inflation data and robust GDP growth exceeding 3%, the central bank is opting for patience to assess economic cooling. Shelter and goods inflation remain persistent challenges, potentially necessitating up to three additional hikes to reverse previous accommodation. The discussion also highlights a shift in communication strategy under the current leadership, which has moved away from formal forward guidance in FOMC statements. Instead, the market must now synthesize the individual public commentary of various Fed officials and governors to anticipate policy shifts. This transition suggests that while official committee guidance is diminishing, the collective "FedSpeak" remains the primary tool for market pricing and transparency.