Week InReview: March 15, 2024

Traders waver on Fed outlook.

Fed Chair Jerome Powell, at a Senate hearing on March 7. Photo: Al Drago | Bloomberg

Fed debate | Traders have again pared their bets for Fed rate cuts and now see just three quarter-point reductions this year, matching policymakers' projections as of December. Hotter-than-expected producer price inflation and lower-than-anticipated jobless claims spurred speculation that the US economy can withstand elevated borrowing costs for longer. The shifting rate bets and economic data lifted 10-year Treasury yields above 4.20% as they climbed the most in a month, while the Bloomberg Dollar Spot Index saw its biggest gain since mid-February.


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