If core inflation, which is currently above 6% of the consumer price index (CPI) does not return to the Fed’s goal of 2%, a 50-basis point rate hike is likely, notes Bank of Singapore’s (BoS) chief economist Mansoor Mohi-uddin.
The US Federal Reserve’s move to raise interest rates by 25 basis points during the Federal Open Market Committee (FOMC) meeting on March 15 came as no surprise to analysts.
At the meeting, one of the members, St. Louis Fed president James Bullard, even voted for a 50 basis point rate hike, which chairman Jerome Powell did not rule out.
