Rumor is today's rally based on this... (and program trading robots)
Medley Says Fed Will Raise Rates Once or Twice More Rich Miller in Washington
March 14 (Bloomberg) -- Medley Global Advisors, a firm that provides research to hedge funds, said most Federal Reserve policy makers want to stop raising interest rates after one or two more quarter-point increases, people who have seen a report from the company said.
Medley said most members of the Federal Open Market Committee, which sets rates, have concluded that 4.75 percent or 5 percent is consistent with a favorable economic outlook. The Fed's benchmark rate is currently 4.5 percent. The firm said another quarter-point increase at the Fed's March 27-28 meeting is virtually assured, according to the people.
The Medley report also said the March meeting will be the first time policy makers will seriously consider whether to end their cycle of interest-rate increases, the people said. The Fed has raised rates 14 straight times since June 2004.
The report contributed to a rally in 10-year U.S. Treasury notes, which investors also bought after a government report showed retail sales declined last month. The yield on the benchmark note fell 8 basis points to 4.69 percent at 1:46 p.m. in New York.
Medley Advisors declined to comment on the report.
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