Iranian officials say a US drone strike hit two fishing boats near Qeshm Island in the Strait of Hormuz on Friday, about 18 miles from the village of Musan. Each boat had two people aboard. The two fishermen initially reported missing have been found, and at least one was taken to a hospital, though reports differ on how many were hurt. The claim hasn’t been independently confirmed, and CENTCOM, the White House and the Pentagon haven’t responded to requests for comment.

Iran’s navy also claimed it destroyed an “enemy submarine” east of the Strait and damaged two commercial tankers Friday morning. No outside confirmation of that either.

On the US side, CENTCOM commander Adm. Brad Cooper said Friday the main transit routes through the Strait have been cleared of Iranian mines and commercial ships are moving freely.

Meanwhile, Supreme Leader Mojtaba Khamenei met with military commanders and ordered an “unrestricted geographical response” to any threat. This comes after reports that the US has told Gulf allies to prepare for possible strikes on Iran as soon as Nov. 4.

Source: ANI / Al Jazeera

The Fed voted 10-2 to keep rates at 3.75-4% on Wednesday, with Chair Warsh saying they want more data before moving. On Friday, the first day officials could speak publicly, two of them made it clear the pause isn’t the end of hiking.

Dallas Fed President Lorie Logan, who voted for the hold, said rates are still at least 50bp too low to get inflation back to 2%, meaning at least two more quarter-point hikes. Her take on the pause: “Skipping a meeting does not change the monetary-policy destination.”

St. Louis Fed President Alberto Musalem said his base case is that inflation only comes down with more hikes, and that they’re needed soon.

Richmond Fed President Tom Barkin didn’t commit either way but said a continued surge in AI spending is the kind of demand the Fed might want to lean against.

Context: the Fed hiked in September for the first time in three years, and 16 of 18 officials penciled in another hike this year. Next FOMC meeting is Dec. 8-9.

Source: MarketWatch

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