What The Market Is Saying About The Fed Meeting Next Week
The PPI fell 1.4% in
February, more than expected.
Ex food/energy, prices rose 0.3%.
Bernanke spoke last night at the Economic Club of New York, and the consensus is
that he will raise rates next week. Fed fund futures
indicate a 91% chance of an increase next week, up from 73% at the end of last
week. Two-year notes fell the most since October, to 4.73%.
Japanese beef consumption rose 6% from a year
ago, although the government said it won’t resume beef imports until
Washington explains how it allowed banned beef to be exported. April cattle
closed at 83.47, up 0.12.
Sugar made a two-week high after powerful storms
destroyed can plantations. Australia is the world’s 3rd largest exporter. Brazil
is using more of its output to make Ethanol.
Natural gas futures rose after Accuweather said
the U.S. will have an active hurricane season. April gas rose 3.3 cents to
$6.868.
June Gold fell $3.00, closing at $558.20.