A 50bps rate HIKE in December? This could be the turning point for risk assets. Bank of America now warns that the Federal Reserve could raise interest rates by 50 basis points in December, DOUBLE the usual increase. For a third consecutive inflation surprise: - Core CPI inflation rose +0.3% and - Consumer prices saw a +0.4% increase across the board in October. BofA suggests another hike could come as early as January as it estimates annual core PCE inflation at 3.3%. A steeper or faster series of hikes could put more pressure on risk assets like stocks and crypto. One silver lining is that the inflation surprise could partly reflect a temporary spike in oil prices. Underlying inflation may still be in check. With oil prices falling in recent days, this month’s data could look different.