The Fed did not increase the key interest rate at last month's meeting, and indicated three rate hikes are expected this year. However, that was before the strong January employment report spooked markets due to the fear the Fed will have to raise rates faster to head off inflation. As a result, the "stronger outlook for economic growth raised the likelihood that further gradual upward policy firming would be appropriate." The Fed offered an upbeat outlook for the economy "suggesting full steam ahead for a rate hike next month," Joe Manimbo of Western Union Business Solutions said in a research note. But a number of Fed members noted that the continued strength in hiring "was likely to translate into faster wage increases at some point."

Source: The Nation Bangkok February 21, 2018 23:37 UTC