Bond traders have been ratcheting up bets that the Federal Reserve isn’t done with its interest-rate hikes just yet. Next week will help determine if they’re right.
The monthly consumer-price index report on Wednesday will provide the latest insight into how much further the central bank may need to go to pull inflation back toward its target. With the economy defying gloomy forecasts and energy prices rising, economists are forecasting the biggest monthly jump in 14 months — and the swaps market is pricing in risk that it will come in even higher than expected.