The possibility of the Federal Reserve raising interest rates within a year has increased to 20%! Investors are no longer "stubborn"

Wallstreetcn
2024.04.23 06:58
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The possibility of the Federal Reserve raising interest rates within a year has risen to 20%, with investors starting to bet on the Fed raising rates again. Analysts point out that investors' expectations of another rate hike by the Fed continue to heat up, with the options market indicating a 20% chance of a rate hike in the next 12 months. In response, former U.S. Treasury Secretary Summers stated that the latest data showing sustained inflationary pressures suggest that the Fed's next policy action may be a rate hike rather than a rate cut. Meanwhile, Federal Reserve Vice Chairman Richard Clarida believes that if the core inflation rate rises above 3%, the likelihood of a rate hike will increase. Currently, the market generally expects the core PCE index to reach 2.7% in March