Two Fed Officials Say Rates Must Rise as Markets Price In a December Hike

Two Federal Reserve officials said this week that interest rates need to rise to curb inflation, according to market reports, even as the central bank held rates at 3.75%–4.00% on Wednesday.

September's PCE inflation reading strengthened expectations that the Fed will raise rates in December. The 10-year Treasury yield ended Friday at 4.929%, down about 0.06 points as investors sought safety.

Higher borrowing costs are a key risk for rate-sensitive sectors and for growth stocks, which have already come under pressure from the late-October sell-off.