St. Louis Fed President Alberto Musalem said in prepared remarks on Friday that additional monetary policy firming will be necessary, 'and soon,' following Wednesday's decision to hold rates steady. His comments bolster investor expectations that the Fed will return to rate hikes at its December meeting, with CME FedWatch pricing roughly a 76% chance of a quarter-point increase. He described the U.S. economy as 'resilient,' pointing to GDP growth of 3.4%, which beat expectations, and an unemployment rate of 4.2%. However, he said inflation is 'too high,' with annual PCE inflation above 3%, and that it could stay above the 2% target unless policy is adjusted. He argued that moving sooner in smaller steps is less disruptive than larger, abrupt actions later.
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Related tickers and likely impact
DXY
▲ Likely positiveRelevance: high
| Market | Currencies |
|---|---|
| Close on 10/29/2026 | 101.88 |
| Change that session | -0.26% |
EUR/USD
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/29/2026 | 1.11822 |
| Change that session | +0.25% |
USD/JPY
▲ Likely positiveRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/29/2026 | 157.689 |
| Change that session | -0.09% |
XAU/USD
▼ Likely negativeRelevance: medium
| Market | Gold |
|---|---|
| Close on 10/29/2026 | 4,021.63 |
| Change that session | -1.13% |
GBP/USD
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/29/2026 | 1.33793 |
| Change that session | +0.41% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/29/2026 | 715.33 |
| Change that session | -1.42% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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