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Will the Federal Reserve signal a March interest rate rise?

Market Questions is the FT’s guide to the week ahead

Will the Federal Reserve signal an interest rate rise in March?

After another month of hot inflation data, the US Federal Reserve at its two-day policy meeting next week is expected to discuss the various tools in its arsenal to combat price pressures and set the stage for an interest rate rise in March.

Since the release of its December 2021 meeting minutes earlier in January, investors and analysts have been anticipating more hawkish action from the central bank. Those minutes showed officials weighing the prospects of raising interest rates “sooner or at a faster pace” than they had initially anticipated.

Futures markets have since fully priced in a quarter-point increase at the March meeting, with a further three hikes priced in for 2022.

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