Probability of higher Fed rate hike soars above 90% for March

ANKARA

The probability of a higher rate hike by the US Federal Reserve during a meeting next month skyrocketed Thursday after US consumer inflation climbed to record levels.

The possibility of a 50 basis points hike soared to 92.8% at 4.30 p.m. EDT, according to the FedWatch Tool provided by US-based global markets company, Chicago Mercantile Exchange (CME) Group.

While the probability climbed further to 94.7% at 5 p.m. EDT, it stood at 46.3% at 9.30 a.m.

The Fed is expected to announce a rate increase after its two-day meeting on March 16.

The probability of an increase of 25 basis points fell to 7.2% from 53.7%, according to CME Group. It further declined to 5.3% at 5 p.m..

The sudden change came as US consumer prices in January soared to 7.5% year-on-year, marking the largest 12-month increase since February 1982, according to the Labor Department.

Investors are expecting the Fed to make faster and higher rate hikes this year to tame record inflation.

ANKARA

The probability of a higher rate hike by the US Federal Reserve during a meeting next month skyrocketed Thursday after US consumer inflation climbed to record levels.

The possibility of a 50 basis points hike soared to 92.8% at 4.30 p.m. EDT, according to the FedWatch Tool provided by US-based global markets company, Chicago Mercantile Exchange (CME) Group.

While the probability climbed further to 94.7% at 5 p.m. EDT, it stood at 46.3% at 9.30 a.m.

The Fed is expected to announce a rate increase after its two-day meeting on March 16.

The probability of an increase of 25 basis points fell to 7.2% from 53.7%, according to CME Group. It further declined to 5.3% at 5 p.m..

The sudden change came as US consumer prices in January soared to 7.5% year-on-year, marking the largest 12-month increase since February 1982, according to the Labor Department.

Investors are expecting the Fed to make faster and higher rate hikes this year to tame record inflation.