❗️The Fed has received another reason to keep raising rates
The S&P Global Composite PMI business activity index rose to 58.4 — the highest level in the past 5 years.
🇺🇸This indicator points to a noticeable revival in business activity in the US and economic stability.
At the same time, inflation is at 3.4% and could continue to rise amid higher oil prices.
So, there is a combination that gives the Fed room for further tightening of policy: the economy is strong, and inflation is accelerating again.
📈Therefore, the likelihood of another rate hike this year has sharply increased to 90%. The market expects the Fed to maintain a tight stance.
#fomc
The S&P Global Composite PMI business activity index rose to 58.4 — the highest level in the past 5 years.
🇺🇸This indicator points to a noticeable revival in business activity in the US and economic stability.
At the same time, inflation is at 3.4% and could continue to rise amid higher oil prices.
So, there is a combination that gives the Fed room for further tightening of policy: the economy is strong, and inflation is accelerating again.
📈Therefore, the likelihood of another rate hike this year has sharply increased to 90%. The market expects the Fed to maintain a tight stance.
#fomc