Rates moved higher Wednesday following yesterday’s comments from Fed officials and a rally in stocks. Yesterday, New York Fed President William Dudley said the case for raising rates has become “a lot more compelling” in the wake of the election and the recent surge in stock prices. Last night’s speech by President Trump raised concerns that policy changes will be inflationary. In today’s economic news, the core PCE price index, the Fed’s preferred measure of inflation, matched expectations with an annual increase of 1.7%, close to the Fed’s target rate of 2.0%. January Consumer Spending fell 1.0%, well short of forecast. The Institute for Supply Management manufacturing index increased to 57.7, above the consensus of 56.0. Readings above 50.0 indicate growth in the manufacturing sector of the economy. The Fed’s Beige Book, a survey of economic activity by the 12 regional Federal Reserve Banks, will be released at 2:00 PM.