Do you see the Fed raising rates in the coming Fed meet on 15th and 16th March?

I think the US Fed will go ahead and start the process of hiking rates as it has already waited long enough. The rate of inflation at 7.9% for Feb-22 is the highest in more than 40 years and you cannot hold rate at 0% when inflation is 7.9%. This situation is incompatible and needs to be rectified. In the past, Fed response to any spike in inflation was to raise interest rates. However, that was simple as long as the inflation was consumer spending driven.

This time it is tad different in that it is driven by supply side constraints. However, the macros are all set for a rate hike. GDP growth has been on upward trajectory, the labour market conditions are close to full employment and consumer spending is also back with a bang. Despite the commodities rally, consumption is not dented. Demand recovery may be uneven, but that can be handled by helicopter money. It really can’t put off rate hikes now.