Fed hawks winning March rate hike tussle

THE likelihood of the US Federal Reserve raising interest rates another quarter-point at its meeting on March 14-15 was all but confirmed this month when Janet Yellen, the Fed chair, said that an increase was likely to be "appropriate".

Ms Yellen had already indicated that every meeting of the Federal Open Market Committee, including the one in March, would be "live" - that is, a rate adjustment would be possible. As the market remained sceptical but favourable data continued to pour in, Fed policymakers became more explicit in their public pronouncements.

On March 1, Lael Brainard, one of the more dovish members of the board of governors, said in a speech at Harvard University that the US was nearing full employment, inflation was approaching the Fed target, and overseas economic growth was picking up.