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Bond Market Ramps Up Inflation View While Fed Seen Staying Put

  • Traders see zero chance of rate rise in April, 64% by year-end
  • BlackRock says central bank concerned with `external factors'
Bloomberg business news

Scope for Fed Summer Hike Widens

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Bond traders are signaling that even inflation expectations at 2016 highs won’t be enough to push the Federal Reserve to raise interest rates this week.

Futures show the central bank will hold its benchmark unchanged when it meets Tuesday and Wednesday as policy makers incorporate international events into monetary-policy decisions. The meeting will give policy makers a chance to either ratify or scale back their stance from their last review in March, when they changed their outlook for rate increases this year to two from four. Officials cited weaker global growth while saying they’re monitoring inflation.