US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, rose for the second consecutive day to 2.38% by the end of Tuesday’s North American session, per the FRED website.

In doing so, the inflation gauge extends rebound from a four-month low flashed last week ahead of the key Federal Open Market Committee (FOMC) meeting, scheduled for Wednesday.

Given the escalating chatters over hawkish halt by the Fed during this week’s appearance, increasing inflation expectations can help the policymakers to prove right the market expectations, which in turn could propel yields and the US dollar.

In addition to the Fed meeting, US PCE Inflation data and the Q4 Advance GDP also gains major attention for the future actions of the US central bank.

Read: Inflation surge could push the Fed into more than four rate hikes this year

This article was originally published by Fxstreet.com.Read the original article here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here