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Market Extra: ‘Blowout’ U.S. inflation leads to high market probability of a half-point Fed rate hike in March

Market Extra: ‘Blowout' U.S. inflation leads to high market probability of a half-point Fed rate hike in March

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January’s hotter-than-expected 7.5% annual reading on consumer prices has traders aggressively lifting the likelihood that the Federal Reserve will lift rates by a half-point in March, which would be the first hike of that magnitude in more than 20 years. The inflation report, which exceeded almost every expectation, is raising concerns in some corners of financial markets that U.S. inflation has yet to hit its peak, and is challenging the prevailing notion among economists, traders and central bankers that price gains should start to head lower this year.

...read full article on Market Watch

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