A 50bps March Fed rate hike is warranted – Bloomberg Economics


Share:

A 50-basis point (bps) interest rate hike is warranted at the Fed’s March meeting, Anna Wong, Chief US Economist for Bloomberg Economics said on Wednesday.

“Our in-house model of a Fed reaction function -- the Bloomberg Economics rule ("BE rule") -- suggests that a 50 basis-point rate hike at the March meeting is warranted, followed by another five 25 basis-point rate hikes the rest of the year,” she explained.

Amid increased speculation the Fed will deliver more than a 25-bps rate hike in March, the US Treasury yields skyrocketed on Tuesday amid a meltdown in the government bond yields.

The benchmark 10-year yields rose to the highest level since January 2020 at 1.89% in early Asian dealings, currently trading at 1.882%, still up 0.77% on the day.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD oscillates at around 0.6680s after FOMC’s decision, ahead of US jobless claims

AUD/USD oscillates at around 0.6680s after FOMC’s decision, ahead of US jobless claims

The AUD/USD finished Wednesday’s session in the green, gaining 0.26%, though well below the day’s highs at 0.6758. As the Asian Pacific session begins, the AUD/USD trades at 0.6683, slightly below its opening price by 0.01%.

AUD/USD News

EUR/USD retreats toward 1.0850 as US Dollar recovers ground Premium

EUR/USD retreats toward 1.0850 as US Dollar recovers ground

EUR/USD reached levels above 1.0900 for the first time since early February after rising more than a hundred pips following the Federal Reserve meeting. It then retreated to 1.0855, as the greenback recovered ground across the board, boosted by a deterioration in market sentiment.

EUR/USD News

Gold soars to $1,978 after Fed raises rates as expected Premium

Gold soars to $1,978 after Fed raises rates as expected

Spot gold jumped to $1,978 during Fed Chair Powell’s press conference and then pulled back. A decline in US yields and broad-based Dollar weakness is offering support to the yellow metal, which is up more than 1% on the day.

Gold News

TRON price crashes 12% as SEC charged founder Justin Sun for violating securities laws

TRON price crashes 12% as SEC charged founder Justin Sun for violating securities laws

TRON price plummeted on March 22 after the cryptocurrency became the new target of the ongoing regulatory crackdown in the United States. The Security and Exchange Commission (SEC) is now looking into Tron founder Justin Sun’s company and related entities of the altcoin’s ecosystem.

Read more

BoE Interest Rate Decision Preview: Preparing ground for a rate hike pause in May Premium

BoE Interest Rate Decision Preview: Preparing ground for a rate hike pause in May

The Bank of England (BoE) is seen keeping up its interest rate increases, although at a slower pace in March, as the world battles financial sector risks.

Read more

Forex MAJORS

Cryptocurrencies

Signatures