Market Insider

Fed turns up heat on rate hike just in time for weak GDP report

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Now that the Fed has turned up the heat around a possible December rate hike, the question is whether the economy will play along.

First up in Thursday's data are the 8:30 a.m. EDT scheduled releases of third-quarter GDP and weekly jobless claims. Third-quarter growth is expected to have slowed significantly to less than half the second quarter's pace, but unemployment claims should again come in around the lowest rate in years.

The Fed on Wednesday issued a surprisingly hawkish post-meeting statement, commenting specifically that it will be looking for progress in employment and labor when considering a rate hike at its December meeting. The fact the central bank specifically mentioned its next meeting immediately triggered a significant move up in market expectations for a Fed rate rise this year.