The Federal Reserve's plans to raise U.S. interest rates gradually are aimed at sustaining full employment and near-2% inflation without letting the economy overheat, Fed Chair Janet Yellen said on Monday.
Oil prices, down for a fifth straight day on Monday, were an outlier in a relatively calm start to an event-packed week for global markets as investors braced for a potential interest rate hike in the United States, a Dutch election and the first G20 finance ministers' meeting of the Trump era.
The market expectations of a probable U.S. interest rate increase in March were fully cemented by February’s solid NFP headline figure of 235k which illustrated steady growth in the U.S. labor markets.
The Federal Reserve will likely have to raise interest rates more rapidly than financial markets currently expect given that any new policies by the Trump administration, while uncertain, will force the Fed's hand, a hawkish central banker said on Tuesday.
U.S. stocks were set to open little changed on Tuesday, with the "Trump rally" pausing ahead of a speech by Federal Reserve Chair Janet Yellen that will be scrutinized for clues on the timing of the next interest rate hike.