Federal Reserve officials agreed at their January meeting that, with inflation weighing more heavily in the economy and employment solid, it was time to tighten US monetary policy, but also that decisions would depend on a meeting-by-meeting analysis. meeting, according to the minutes of the meeting.
Participants agreed that target interest rates would likely need to rise at a “faster pace” than when the Fed last raised them in 2015.
This day it was also known that retail sales increased by 3.8% in January, with a strong rebound from the previous month, led by an increase in purchases of motor vehicles and other goods. Economists had forecast a 2% rise.
“If the consumer can absorb, continue to spend and prosper in this inflationary period, that gives the Federal Reserve more room to be aggressive in its monetary policy”said Keith Buchanan, portfolio manager at Globalt Investments in Atlanta.
Markets are pricing in a 57.5% chance of a 50 basis point hike at the next Fed meeting on March 16 and a 42.5% chance of a 25 basis point hike.
Source: Ambito
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