US interest rate futures expected to raise interest rates three more times PCE price index received | Reuters

The Commerce Department’s January personal consumption expenditures (PCE) price index for January has prompted the Fed to raise interest rates at least three more times in the short-term interest rate futures market, pushing interest rates down over the longer term. is expected to remain at a high level. (2023 REUTERS/Marcos Brindicci)

[２４日 ロイター] – The Commerce Department’s January Personal Consumption Expenditures (PCE) price index for January has pushed the short-term interest rate futures market for at least three more rate hikes by the Federal Reserve and a longer term. The view that interest rates will be kept at a high level has strengthened.

Interest rate futures prices have fueled speculation that the Fed will raise its current federal funds rate target of 4.50% to 4.75% to 5.25% to 5.50% by June. .

It also puts the odds of at least one more 0.25 percentage point rate hike by July in addition to the expected March and May hikes to about 30%.

The year-end federal funds rate target is now expected to be between 5.25% and 5.50%.

The Commerce Department’s personal consumption expenditures (PCE) price index rose 5.4 percent in January from a year earlier, up from 5.3 percent the previous month.