The Fed received another reason to keep raising interest rates
The S&P Global Composite PMI business activity index rose to 58.4, its highest level in the past 5 years.
The indicator points to a noticeable strengthening of business activity in the US and the continued strength of the economy.
At the same time, inflation is at 3.4% and may continue to rise amid higher oil prices.
So, this creates a combination that gives the Fed room for further tightening: the economy is strong, and inflation is accelerating again.
That is why the probability of another rate hike this year has sharply increased to 90%. The market expects the Fed to maintain its tough stance.
The S&P Global Composite PMI business activity index rose to 58.4, its highest level in the past 5 years.
The indicator points to a noticeable strengthening of business activity in the US and the continued strength of the economy.
At the same time, inflation is at 3.4% and may continue to rise amid higher oil prices.
So, this creates a combination that gives the Fed room for further tightening: the economy is strong, and inflation is accelerating again.
That is why the probability of another rate hike this year has sharply increased to 90%. The market expects the Fed to maintain its tough stance.