Is a Fifty Basis Point Move By the Fed Next?

The New York Sun reports:

The Federal Reserve could soon drop a bombshell, slapping investors with a bigger than expected rate increase at the December 13 meeting of the Federal Open Market Committee.

This bleak just-issued forecast comes from the chief economist of Standard & Poor's, David Wyss, whose outlook for next month's meeting calls for a hike of 50 basis points, not the widely anticipated 25 points, a move that would boost the federal funds rate to 4.5%.

Although Mr. Wyss believes his projected 50-point increase would signal the end of the current tightening cycle - which has produced 12 consecutive rate hikes since June 2004 - some Wall Streeters say it would nonetheless scare the dickens out of the market since almost no one expects a jump of that magnitude at this juncture.

You might want to read the whole piece if you believe that easing is just around the corner.