Economics
Bond Traders Rule Out April Rate Rise as Fed Forecasters on Hold
- Fed caught in 'negative feedback loop,' Goldman's Beinner says
- Treasuries tumble on improved outlook for jobs, inflation
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Futures traders see zero chance that the Federal Reserve will raise interest rates when it meets next week, even as an improved outlook for U.S. inflation and economic growth bolsters the case for tighter monetary policy.
Treasuries fell this week by the most since November as data showed jobless claims dropped to the lowest since 1973 while oil extended a two-month surge. As the U.S. central bank attempts to tighten policy while its major global peers continue easing, it’s stuck in a cycle that’s hindering its shot at normalization, according to Goldman Sachs Asset Management.