Traders Scale Back Bets on March Rate Cut as Inflation Expectations Climb
• Traders backing off expectations of a March Fed rate cut as inflation expectations rise • Chance of no rate cut in March now over 50%, highest level in a month • Key gauge of long-term inflation expectations, the 5-year/5-year forward rate, edged up to 2.4% • Rate hike views changing after strong US economic data this week • Higher inflation readings and forecasts suggest expected rate cuts this year may not materialize