Fed set to raise rates again, defying Trump's calls for cuts

The US Federal Reserve is expected to raise interest rates for a second time this cycle, ignoring President Donald Trump's demands for cuts, after inflation exceeded expectations for a third consecutive month. The central bank may hike by 25 or 50 basis points at its December meeting. October consumer prices rose 0.4 percent, with annual inflation estimated at 4 percent, well above the Fed's 2 percent target. Core inflation, excluding food and energy, was 2.8 percent. Fed officials, including Trump appointees, have signaled support for multiple hikes, citing spreading inflation from tariffs and higher transport costs. Markets have fully priced in a December rate rise, with bond yields jumping sharply. The Fed's aggressive stance is supported by the Democratic midterm victory, limiting Trump's ability to influence policy. Meanwhile, the administration faces a $2 trillion deficit and rising debt costs, compounding economic pressures.