[Huatai Securities: The Necessity for a Fed Rate Hike in October Decreases, December Hike Expected as the Base Case] Odaily Planet Daily News - A research report from Huatai Securities indicates that looking ahead, with the Fed's rate hike in September implemented, December may become the next substantial period for rate hike deliberations. Whether the Fed will initiate a rate hike cycle still requires more data and statements from officials to assess. Currently, the market is pricing in a probability of over 50% for a Fed rate hike in October. However, Huatai Securities believes that factors such as a decline in fiscal impulse, increased erosion of consumer spending by oil prices, tightening financial conditions, and potential cooling of employment and inflation data in the next 1–2 months reduce the necessity for a rate hike in October. It is expected that a December rate hike will be the base case. The Fed's rate hike trajectory in 2027 will depend on subsequent economic data, particularly whether the labor market continues to improve, thereby driving wage growth, as well as the trend of inflation. (Jin10)