The Globe and Mail reports in its Thursday edition that officials at the U.S. Federal Reserve agree that interest rates need to rise to combat escalating inflation. A New York Times dispatch to The Globe reports that there is debate, however, about the pace and aggressiveness of these increases needed to return inflation to its 2-per-cent target. This discussion intensified after new data from the Bureau of Labor Statistics indicated a faster-than-expected rise in inflation in October. The Fed must now decide whether to ratchet up its response. Financial markets are anticipating more rate increases in 2027, with many economists downplaying the likelihood of a half-point rate hike next month, despite acknowledging the need for faster tightening. Deutsche Bank economist Matthew Luzzetti says: "The latest inflation data reinforced the idea that price pressures remain sticky and elevated and are not just due to one-off shocks. Therefore, the Fed probably has more work to do and in order to balance the risks better, it makes sense to do that at a somewhat quicker pace than we were previously anticipating." He now expects the Fed to raise rates by a quarter-point not only in December but also in January and March.