The Fed Could Have Another Dilemma With Today’s Inflation Report

Mar 14, 2023

The Fed Could Have Another Dilemma With Today's Inflation Report

According to economists surveyed by FactSet, the CPI will rise by 6% year over year in February, down from 6.4% in January, and prices will expand by 0.4% over the prior month as opposed to 0.5% in January.

An analyst at broker XM named Charalampos Pissouros claimed that a significant decline in the headline CPI rate is out of the ordinary given the continued decline in oil prices year over year.

Core CPI, which does not include volatile food and energy prices, probably decreased from 5.6% in January to 5.5% last month.

Pissouros stated that market players might feel more confident about the most recent adjustment in their Fed bets should the core rate decrease by more than anticipated.

Economists expectations for the next rate action by the U.S. central bank are represented by those bets. In contrast to a 50-basis-point hike in December and numerous 75-basis-point increases last year, the Fed increased rates by 25 basis points in February. (One-hundredth of a basis point is a percentage point.)

https://liquidity-provider.com/app/uploads/2023/03/x-1.png

A significant stock market selloff that started in February after equities rose in January was aided by the increase in interest rates during the previous 12 months.

Traders' predictions for the next rate decision were divided before last Friday's failure of Silicon Valley Bank and regulatory actions to guarantee depositors and launch a new lending facility for banks. Some predicted a 50 basis point increase, while others thought it would be 25 basis points.

It is still unclear if the Fed would raise rates at all or announce a halt to its monthly quantitative tightening program, according to Quincy Krosby, the chief global strategist at LPL Financial. She said the Fed might take both actions.

According to the CME FedWatch Tool, the futures market was pricing in a 35% likelihood that the Fed will not adjust interest rates next week and a 65% chance that it will rise by 25 basis points. A half-point increase in interest rates is ruled out.

The recent rapid spike in interest rates has left Silicon Valley Bank with significant unrealized losses on its bond portfolio, which includes mortgage-backed securities. Depositors fled when the bank was compelled to liquidate part of its holdings, resulting in a $1.8 billion loss.

As James Reid, a strategist at Deutsche Bank, the environment ahead of tomorrow's CPI is intriguing. That's an understatement for sure.

Subscribe Our Newsletter

Articles: FinTech - Liquidity Provider: Business & FinTech Media

Milena

Earnings from Nvidia Spark a Massive AI Stock Rally. The Excitement is Growing.

Shares of other AI - based businesses, such as C3.ai, Microsoft, and Alphabet, rose ahead of the open as a result of the chipmaker's outsized projections.

Stocks
The Stock Market Got A Big Boost From The Bond Selloff. The Fed Could Change That.
The Stock Market Got A Big Boost From The Bond Selloff. The Fed Could Change That.

Avoid looking for the "positive news" that fueled the week's advances — there was none, at least not in the usual sense. Russia's attack on Ukraine seems to be far from over. Fed Chair Jerome Powell and several central bank officials have discussed the prospect of a half-point rate hike at forthcoming meetings.

Stocks
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Constantine

What is WAGMI and NGMI? Understanding Crypto Slangs
Dive into the meaning and impact of WAGMI and NGMI in crypto culture. Learn how these phrases shape optimism, caution, and collaboration in digital communities.

discover
5 Most Successful FinTech Industry Startups in 2022

Constantine

5 Most Successful FinTech Industry Startups in 2022

The financial services industry is undergoing a paradigm shift as a result of technological advancements, which are actively displacing traditional players and traditional business models. Significant changes are achieved through the integration of new financial solutions, reduction in the cost of certain functions, improvement in efficiency and quality of business, and a positive impact on the sustainability of core business development.

FinTech Awards
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison

    Constantine

    Top Solana Meme Coins in 2025: Best Presales and Where to Buy

    Solana Meme Coins 2025

    Alexander

    How Renewable Energy Stocks Can Supercharge Your Portfolio

    How Renewable Energy Stocks Supercharge Your Portfolio

    SEC Crypto Regulations: What Financial Advisors Need to Know

    SEC Crypto Regulations: Insights for Financial Advisors
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.