Strong September Retail Sales Boost Chance of More Aggressive Fed Rate Hikes

Retail sales rose 0.7% in September, more than double expectations, showing resilient consumer spending
6 straight months of retail sales growth has been supported by strong job gains, boosting consumer position entering Q4
Upside risks to inflation from strong consumer may lead to more Fed rate hikes than expected
Fed Chair Powell has noted a stronger economy could warrant more rate hikes to get inflation to 2% target
Markets now see 40% chance of a December rate hike, up from 25% last week, as yields and stocks dropped on retail sales report