Fed boss says United States rates may rise in March

The market consensus is that the Fed will raise short-term interest rates this month, an official at a major Japanese bank said.

Benchmark Brent crude futures ended the session up 1.5 percent at $55.90 a barrel and WTI futures settled up 1.4 percent, at $53.33 after both closed down about 2.3 percent in the previous day’s session.

The Dow Jones Industrial Average closed virtually unchanged at 21,005.71. The large-cap index still held on for its sixth straight weekly gain after reaching a new record high on Wednesday. The Nasdaq composite index slid 5 points, or 0.1 per cent, to 5,856.

Dudley also has a permanent vote on the Fed committee that decides whether to raise, lower or maintain interest rates.

Mr Bullard said the Fed has achieved its dual mandate – jobs and price stability – which ordinarily strengthens the case for higher rates, but it was the St. Louis Fed’s belief that “the low-safe-real-rate regime is unlikely to change in the near term” and that “a relatively low policy rate will remain appropriate”. Bianco Research notes that once a meeting is 10 trading days a way, the market has correctly predicted the Fed’s actions 90 of the last 90 times. That probability was less than 20% only a week ago. Since theNov. 8 election, the S&P 500 has risen 11 percent.

Stocks were up slightly, and futures tied to rate-hike expectations moved little on Yellen’s remarks.

Gold stocks plunged 4 percent yesterday and will move today depending on whether Yellen and her colleagues offer hawkish comments. Bank of the Ozarks added 92 cents, or 1.7 Percent, to $56.07, while Signature Bank rose $2.57, or 1.6 per cent, to $162.02. “It’s the investment grade corporate market and Treasury market that will have to reckon with hikes more than equities will”. What do you do now?

MARKETS OVERSEAS: In Europe, Germany’s DAX fell 0.3 per cent, while France’s CAC 40 rose 0.6 per cent. Britain’s FTSE slipped 0.1 per cent. The company said late Thursday that incident was likely due to a tax matter being contested by the construction and mining equipment maker (http://www.marketwatch.com/story/caterpillar-says-raids-were-likely-related-to-tax-investigation-2017-03-02) (http://www.marketwatch.com/story/caterpillar-says-raids-were-likely-related-to-tax-investigation-2017-03-02).

Traders have priced in a 76% chance of a rate hike this month, compared with roughly 30% at the start of the week, according to Thomson Reuters data. The yield curve also flattened, as the 10-year Treasury rate edged up to 2.39% while the 2-year Treasury popped almost 7 basis points to 1.26%.