According to Bloomberg News, inflation-related pressure was consistent at the beginning of the year, thereby putting the Federal Reserve’s plan to increase the rate on autopilot next month.
The CPI or the consumer price index surged 7.3% in January compared to a year ago, recorded as the biggest annual advance since the beginning of 1982, as per median projection by Bloomberg economists. Leaving aside volatile energy and food categories, it is expected that the CPI will escalate by 5.9%.
The inflation data follows the government’s latest employment report, which indicates a new momentum is prevalent in the neighboring market and growth in wage is faster that has triggered bets that the Federal Reserve will be more aggressive when it comes to increasing the rates.
It is a light week for Federal speak, with Governor Michelle Bowman and Cleveland Fed’s Loretta Mester scheduled Wednesday.
The silence from Washington most likely reflects that Governor Lael Brainard and Powell are waiting for confirmation from the Senate, with Powell for another four years at the helm, and Brainard likely to become the vice-chair.
Elsewhere, the central bank of Russia is likely to hike rates by 100 basis points, which is probably the biggest move with anticipation that there will be global tightening by the Poland and Peru monetary officials.
