The Federal Reserve is seen raising its benchmark rate a quarter of a percentage point next week and again in May, as a government report showed U.S. inflation remained high in February, and concerns of a long-lasting banking crisis eased.
Bank stocks on Tuesday erased some of their recent large losses. Meanwhile the Labor Department's inflation report showed a 6% rise in the consumer price index last month from a year earlier. It was the smallest gain in a year and a half, but far too high for the central bank to declare its work is done."Inflation has peaked but remains stubbornly firm and isn't declining as quickly as the Fed would like," analysts at Jefferies wrote.
Traders for their part continue to price in some easing by summertime and see the Fed policy rate ending 2023 at just under its current level.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed funds furtures are repricing the Fed significantlyFed funds futures have rallied that shows that traders see a 33% chance that the Federal Reserve holds rates this month while the market pricing shows
Read more »
Fed rate expectations flip as US inflation data may take backseat to banking tumultInflation is occupying the sidecar as U.S. banking turmoil leads the way, and experts expect a Fed pivot. What could go wrong?
Read more »
Why another high inflation report may not cause Fed to hikeThe government inflation report being released Tuesday is expected to show that price acceleration in the United States remained chronically high in February, putting the Federal Reserve in an unusually tough position
Read more »
Why another high inflation report may not cause Fed to hikeThe government inflation report being released Tuesday is expected to show that price acceleration in the United States remained chronically high in February, putting the Federal Reserve in an unusually tough position.
Read more »
Factbox: SVB collapse may prompt Fed to go slow on rate hikesTraders no longer expect a rate hike of 50 basis points by the U.S. Federal Reserve next week as the surprise collapse of lender Silicon Valley Bank rattles the financial system.
Read more »
Why another high inflation report may not cause Fed to hikeThe government inflation report being released Tuesday is expected to show that price acceleration in the United States remained chronically high in February, putting the Federal Reserve in an unusually tough position.
Read more »