---
title: "Markets see December Fed hike as inflation stays high"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286595604.md"
description: "Markets are now pricing in over a 50% chance of a Fed rate hike by December 2026, reversing previous expectations for cuts. Core import prices increased by 3.3% year-on-year in April, with energy costs rising due to supply disruptions from the Iran conflict. Lower-income households are quickly depleting tax refunds as inflation exceeds wage growth, raising concerns about a potential spending slowdown."
datetime: "2026-05-15T16:57:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286595604.md)
  - [en](https://longbridge.com/en/news/286595604.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286595604.md)
---

# Markets see December Fed hike as inflation stays high

Shift in rate outlook: Markets now price in over a 50% chance of a Fed rate hike by December 2026, reversing earlier expectations for cuts. Inflation still stubborn: Core import prices rose 3.3% year-on-year in April, while energy costs surged amid Iran conflict-related supply disruptions. Consumers feeling strain: Lower-income households are depleting tax refunds quickly as inflation outpaces wages, raising risks of a spending slowdown.

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