The Federal Reserve will downshift in December to deliver a 50-basis-point interest rate hike, but economists polled by Reuters say a longer period of U.S. central bank tightening and a higher policy rate peak are the greatest risks to the current outlook. U.S. consumer price inflation unexpectedly fell below 8% last month, bolstering already well-established market expectations the Fed would go for smaller rate hikes going forward after four consecutive 75-basis-point increases. But the latest Reuters poll shows forecasts for inflation in the coming year and into next are slightly higher than thought one month ago, suggesting it is not time yet to consider an imminent pause in the Fed's tightening campaign.
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