Chairman Jerome Powell appears to be realigning his outlook with more “hawkish” members of the Federal Reserve (Fed) — suggesting 50-basis-point rate hikes will likely be necessary to rein in high inflation. The bond market repriced quickly following Powell’s comments, with the 2-year Treasury closing above 2.25%, its highest level since early 2019.
This week’s economic data will provide two important data points for investors, with the Fed’s preferred inflation gauge — personal consumption expenditures — released Thursday and the March employment report coming out Friday. Fed policymakers will be looking for some sign of cooling for both growth and inflation but consensus forecasts are predicting just the opposite.
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