The January Consumer Price Index (CPI) rose 6.4% year-over-year, exceeding the Dow Jones estimate of 6.2%. In addition, the significant retail sales growth of 3% and the hotter-than-expected labor market adding 5,17,000 jobs have accelerated the pressure on the Fed to keep higher rates for some time.
Goldman Sachs Group Inc. (GS) and Bank of America Corporation (BAC) anticipate the U.S. Federal Reserve to raise interest rates three more times this year. Markets expect the Fed to raise rates to the 5.25-5.50% range.
