CNBC writes "Goldman, JPMorgan boost rate hike expectations on hotter inflation". They tell us, "Fed Chair Janet Yellen pushed up the odds of a March hike with her hawkish comments Tuesday during her Senate testimony, but the strength of Wednesday's retail sales and hotter-than-forecast CPI inflation data nudged them even higher -- to about 30 percent. JPMorgan economists, in fact, changed their forecast for a June rate hike to May based on the two economic reports. 'We still think March is too early for them to hike, particularly given their propensity to prepare markets for a move. Instead, we think March would be a good meeting for them to prepare the markets for a hike at the subsequent meeting on May third,' the economists wrote. Most Fed watchers have forecast a June rate hike. Goldman Sachs economists also said that based mostly on the hotter inflation reading, the likelihood of a March hike increased to 30 percent from 20 percent, but they also see a better chance for May." The piece adds, "The Consumer Price Index jumped 0.6 percent in January, after rising 0.3 percent in December, for its biggest monthly gain in four years. The CPI was up 2.5 percent, in the largest year-over-year gain since March 2012. It rose above 2 percent for the first time in two years in December.... The Fed has a target of 2 percent inflation, though it favors looking at the personal consumption expenditure inflation data, which is under 2 percent.... Retail sales also were higher than expected, rising 0.4 percent in January. Sales were revised up for December to 1 percent."

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