Labour market data tells Fed to keep hiking but remain gradual
Managing Director and Chief Economist, AMP Capital New Zealand New Zealand
The February US labour market data supports the story that the FOMC is not behind the curve and that increase in wages and inflation will likely remain gradual. The strong jobs growth will give them confidence to hike another 0.25% next week and reassert the gradual rate hiking path ahead. In terms of the dots that means a likely consolidation around three hikes this year with possibly some starting to drift up to four.
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Important notes
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