"We judged that the case for an increase has strengthened but decided for the time being to wait," Yellen told a news conference. "The economy has a little more room to run." ( Federal Reserve Board Chair Janet Yellen speaks during a news conference following the Federal Open Market Committee meeting, September 21, 2016 in Washington, DC. - AFP)
NEW YORK: A March interest-rate increase by the Federal Reserve, an unlikely scenario just days ago, is now suddenly on the table after an unexpectedly strong inflation print and hawkish testimony from Fed chair Janet Yellen to Congress.
Traders’ expectations for a hike next month jumped after consumer prices rose the most in January since 2013. Derivatives traders are pricing in a 42% probability that the Fed raises rates at its March 14-15 meeting, up from 24% on Feb 6.
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