US inflation declines only slowly, Fed cannot be satisfied – Commerzbank

US annual CPI data declined to 6.4% in January vs. 6.2% expected. Thus, economists at Commerzbank expect further rate hikes.

Fed will raise key rates by a total of 50 bps

“Inflation in the US is easing, but only slowly. This was confirmed by the January figures, with a slight drop from 6.5% to 6.4%. The Federal Reserve can therefore not yet be satisfied.”

“We continue to forecast that the Fed will raise key rates by a total of 50 bps, the upper bound of the target corridor would then be 5.25%.”