Fresh GDP and Inflation Data Could Force the Fed's Hand on December Rate Hike

The Federal Reserve chose to pause on raising interest rates, but new economic data released at 8:30 a.m. Eastern time could complicate that wait-and-see approach, according to MarketWatch. Gross domestic product and inflation reports are being published simultaneously, giving policymakers a fresh snapshot of how the economy is performing.

MarketWatch reports that if the figures show the economy growing strongly while price pressures remain elevated, it would bolster arguments inside the Fed for raising rates at its next meeting in December. The timing puts renewed pressure on central bankers who had just opted to hold steady.

Markets are watching closely, since any sign that inflation remains sticky alongside robust growth could shift expectations for how aggressively the Fed needs to act before the year ends.