US retail sales rose more than expected in October, reviving doubts about the wisdom of additional rate cuts. “Retail sales data [in October] make many in the markets wonder if another rate cut at the December meeting is warranted at all,” says Christopher Rupkey, chief economist at FWDBONDS. “With fiscal policy expected to shift into high gear on the pro-growth stimulus side, perhaps the Fed’s monetary policy should not be putting another log on the fire to fuel growth by lowering rates, as it could lead to a return of inflation.”
