- Investors expect a 0.25% increase from the Federal Reserve this month after a jump in unemployment, cooling wages and anxiety over the collapse of Silicon Valley Bank.
- The monthly employment report from the US showed employers added 311,000 jobs in February, lower than January, and average hourly earnings increased 0.2%.
- Investors had been pricing a peak in interest rates at nearly 5.7% in September, but now a peak of 5.3% is expected in June and between one and two rate cuts priced in by year-end.
- The crisis at Silicon Valley Bank led to a flight to safety in markets, with investors selling bank stocks, and buying up Treasury bonds.
- The crypto market collapse has taken down crypto-focused bank Silvergate this week and is now appearing in places like Silicon Valley Bank.
Investors expect smaller rate rise amid cooling wages and market fears
Fed predicted to increase by 0.25% in March after day of mixed economic data and collapse of SVB
Kate Duguid
