• Traders of futures tied to the Federal Reserve’s policy rate were pricing in a half-percentage-point hike in interest rates at the U.S. central bank’s March 21-22 policy meeting after Fed Chair Jerome Powell said on Tuesday that continued strong inflation data could require tougher measures.
• Implied yields on fed funds futures contracts fell, pointing to a 48% probability that the central bank will lift its benchmark overnight interest rate to the 5.00%-5.25% range on March 22, from the current 4.50%-4.75% range, according to CME Group’s FedWatch tool. That was up from the 30% chance seen before Powell’s testimony before the Senate Banking Committee.