Richmond Fed President Tomas Barkin said on Wednesday that he would be open to a 50 bps rate hike in May if necessary and that he will be looking at inflation and how strong the economy is, according to an interview on Bloomberg TV. The war in Ukraine has added to inflationary pressures, he noted, caveating but has not impacted US demand. Indeed, there is still a tonne of excess demand for labour, he continued, noting that it feels like inflation will settle next year as the Fed's tightening actions take effect, excess consumer savings are spent and supply chain snags ease. Underlying demand in the economy remains strong, Barkin said.
At the same time as Barkin was giving his remarks, Fox reporter Charles Gasparino said that trading sources had told him that the robust core PCE reading (for Q4 2021) on Wednesday had pretty much locked in a 50 bps rate hike at the coming meeting. Gasparino said that some traders thought the Fed might move to lift rates on an intra-meeting basis, but other sources had told him that this was an unlikely move.
BREAKING: Trading sources tell @FoxBusiness robust core PCE (personal consumption expenditure) gauge Wednesday pretty much locks in a 50 basis point raise at May meeting. Some traders think @federalreserve could move intra meeting, but my Powell watcher sources say thats unlikely
— Charles Gasparino (@CGasparino) March 30, 2022
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.