Apr 17 2015

Rate Range Projection by Bank 

Next week 118.00- 121.50 

Next 3 months 115.00 - 127.00

 

"The data should allay the disinflation concerns that predominated earlier this year and, on the margin, increase the Fed's confidence that inflation will eventually move toward its target," said Michelle Girard, chief economist at RBS in Stamford, Connecticut. U.S. consumer prices increased for a second straight month in March on rising gasoline and housing costs, a sign of an uptick in inflation that should keep the Federal Reserve on course to start raising interest rates this year. March's broad-based price gains bolster the U.S. central bank's long-held view that inflation will gradually move toward its 2 percent target as the dampening effect of lower energy prices fades. In the 12 months through March, the CPI slipped 0.1 percent after being unchanged in February. "This report helps to increase policymakers' confidence, but we also need to see further improvement in the labor market. We are very comfortable with our call for a September liftoff," said Laura Rosner, an economist at BNP Paribas in New York. Before september, raft of weak economic data, including the March nonfarm payrolls report.This report helps to increase policymakers' confidence, but we also need to see further improvement in the labor market. We are very comfortable with our call for a September liftoff," said Laura Rosner, an economist at BNP Paribas in New York.The economy, appears set to rebound from a soft patch in the first quarter. In a separate report, the University of Michigan said its consumer sentiment index jumped to 95.9 early this month from 93.0 in March.