Fed May Pause Rate Hikes in November, But Inflation Data Key to Outlook

Soaring bond yields indicate Fed may pause rate hikes in November, but inflation data could change outlook.

Markets betting heavily against a rate hike in November, pricing in just 8% chance according to FedWatch tool.

But higher than expected inflation in Thursday's CPI report could alter Fed's stance.

Rise in bond yields may already be tightening financial conditions, perhaps reducing need for more hikes.

Goal is "Goldilocks" scenario of strong growth and weakening inflation without recession.