Persistently High Energy Prices, Core Inflation Warrant 'A Few' Fed Rate Hikes
Dow Jones
4 hours ago
0604 GMT - Pimco expects the Federal Reserve to raise rates by 25 basis points this week, with the possibility of further hikes down the line, says economist Tiffany Wilding in a note. Given persistently high energy prices, the volatile situation in the Middle East, and core inflation remaining above 2%, "a few rate hikes to guard against the risk of rising inflation expectations now constitute our base-case scenario," she says. However, if inflation data continue to improve, it is possible that additional rate hikes will ultimately not materialize, she says.
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