As recently as March, the Fed wasn’t expected to raise rates until 2024. Now, economists are predicting three rate hikes in 2022 alone.
Data released last week found that, and the Department of Labor reported Tuesday that wholesale prices jumped at a record rate of 9.6 percent from a year ago.
Federal Reserve Chairman Jerome Powell speaks during a Senate Banking Committee hearing on Capitol Hill, Nov. 30, 2021.“I’m expecting a substantially more hawkish tone heading into Wednesday,” said David Wagner, portfolio manager and analyst at Aptus Capital Advisors. “Inflation is real right now.” “This is just a reaction from the Fed as they’ve seen this trade off between growth and inflation worsen. They’re forced into difficult decisions,” said James McCann, deputy chief economist at Abrdn, because of the unique distortions the pandemic has imposed on the economy.
Dysfunction in D.C. also doesn’t help. “You’ve got policy uncertainty as well as Covid uncertainty. It really makes the Fed’s job a little more challenging,” Lee said, pointing to the ongoing wrangling in Washington.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street ends down; investors eye Omicron and Fed meetingWall Street ended lower on Monday, with shares of Carnival Corp and several airlines tumbling as investors worried about the Omicron coronavirus variant ahead of a Federal Reserve meeting later this week.
Read more »
Wall Street falls on Omicron worries ahead of Fed meetingU.S. stocks fell on Monday on worries about the Omicron coronavirus variant ahead of a Federal Reserve meeting later this week, while investors watched Apple close in on $3 trillion in market capitalization.
Read more »
Dollar near one-week high amid hawkish Fed hopes, Omicron fearsThe dollar traded near a one-week high versus a basket of major rivals on Tuesday, supported by expectations of a hawkish Federal Reserve meeting this week and haven demand amid continued uncertainty about the Omicron coronavirus variant.
Read more »
Asian stocks dip as Omicron spreads, Fed decision loomsAsian stocks and oil prices slipped on Tuesday as the spread of the Omicron coronavirus variant rattled investors who were already on edge ahead of a slew of central bank decisions this week, including a key Federal Reserve meeting.
Read more »
Biden aiming to announce Fed nominees by holidays: White HouseThe Biden administration is planning to announce nominees for positions on the Federal Reserve 'soon,' White House press secretary Jen Psaki said Monday....
Read more »