CNBC writes "​Goldman, JPMorgan boost rate hike expectations on hotter inflation". They tell us, "Fed Chair Janet Yellen pushed up the odds of a March hike with her hawkish comments Tuesday during her Senate testimony, but the strength of Wednesday'​s retail sales and hotter-​than-​forecast CPI inflation data nudged them even higher -- to about 30 percent. JPMorgan economists, in fact, changed their forecast for a June rate hike to May based on the two economic reports. 'We still think March is too early for them to hike, particularly given their propensity to prepare markets for a move. Instead, we think March would be a good meeting for them to prepare the markets for a hike at the subsequent meeting on May third,' the economists wrote. Most Fed watchers have forecast a June rate hike. Goldman Sachs economists also said that based mostly on the hotter inflation reading, the likelihood of a March hike increased to 30 percent from 20 percent, but they also see a better chance for May." The piece adds, "The Consumer Price Index jumped 0.​6 percent in January, after rising 0.​3 percent in December, for its biggest monthly gain in four years. The CPI was up 2.​5 percent, in the largest year-​over-​year gain since March 2012. It rose above 2 percent for the first time in two years in December.... The Fed has a target of 2 percent inflation, though it favors looking at the personal consumption expenditure inflation data, which is under 2 percent.... Retail sales also were higher than expected, rising 0.​4 percent in January. Sales were revised up for December to 1 percent."

Your Name:
Your Email:
Recipient Email(s):

Use a comma or a semicolon to separate

Please retype symbols from the image:

Optional Message

Daily Link Archive