Fed hike in March gains credence with JPMorgan, Citi leaning in

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Expectations the Fed will begin raising interest rates in March soar following slide in US unemployment rate. MoneywebNews

Expectations for the US Federal Reserve to begin raising interest rates in March – a fringe call just weeks ago – are soaring in the wake of a slide in the US unemployment rate and fresh signs that central bankers are eager to wind back record policy stimulus to confront historically high inflation. “It’s hard to avoid the conclusion that the labour market is very tight.

Ten-year yields punched through their 2021 highs on Friday to reach levels unseen since the pandemic struck, and were at 1.76% as of 16:38 in New York. Interest-rate futures are now pricing in about 78% odds of a March Fed rate hike. Markets may need to adjust even further, according to former Federal Reserve Bank of New York President William Dudley.

 

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