Banking sector turmoil muddies waters for Fed’s upcoming decision as ECB hikes again

Confirmation that US inflation was continuing at a high pace offered a dilemma for markets seeking to anticipate the Federal Reserve’s (Fed) next move. The Consumer Price Index rose by 6% year-on-year in February, slowing from 6.4% in January but still well above the Fed’s 2% target. The picture was complicated by unsettling difficulties in the banking sector that were partly linked to the sharp tightening in monetary policy over the last year, and which were seen as potentially moderating the Fed’s view. Some had considered a 50-basis-point (bp) hike likely at on Wednesday the 22nd's meeting,...