# Hot inflation fuels case for 'big-bang' Fed rate hike in March

> Following a hotter-than-expected inflation reading, rate futures priced in a half-point Federal Reserve hike in March 2022 and a path to 1.75%-2.00% by year-end. The market saw only a slight chance of a smaller quarter-point move.

- Date: 2022-02-10 · published 2022-02-10T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/42644-hot-inflation-fuels-case-for-big-bang-fed-rate-hike-in-march
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Aggressive tightening expectations strengthen the dollar and pressure commodity prices, including feed ingredients priced in dollars. Stronger dollar conditions can also reduce import demand from emerging markets.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-06-10 | [Rand slumps almost 3% as hot US inflation data backs case for Fed rate hikes \| News24](https://feedsoft.ai/events/41269-rand-slumps-almost-3-as-hot-us-inflation-data-backs-case-for-fed-rate-hikes.md) | +1.5% | +3.7% |
| DXY | 2022-01-27 | [Fed likely to hike rates in March as Powell vows sustained inflation fight \| Reuters](https://feedsoft.ai/events/12223-fed-likely-to-hike-rates-in-march-as-powell-vows-sustained-inflation-fight.md) | +0.1% | +0.7% |
| DXY | 2022-03-16 | [Fed finally moves against inflation with rate hike \| Reuters](https://feedsoft.ai/events/42200-fed-finally-moves-against-inflation-with-rate-hike-reuters.md) | -1.0% | -0.7% |
| DXY | 2018-09-28 | [Fed rate hike has effect on forex trading in China - CGTN](https://feedsoft.ai/events/63268-fed-rate-hike-has-effect-on-forex-trading-in-china-cgtn.md) | +0.6% | +1.3% |
| DXY | 2018-04-11 | [Fed minutes: 'All' members see higher GDP and inflation, and more rate hikes](https://feedsoft.ai/events/65431-fed-minutes-all-members-see-higher-gdp-and-inflation-and-more-rate-hikes.md) | -0.3% | +3.4% |

## Sources

- reuters.com: https://www.reuters.com/world/us/hot-inflation-builds-case-big-bang-fed-rate-hike-march-2022-02-10/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.