This Jan. 27, story corrects paragraph 4, to indicate that the difference between six- and three-month yields has been at its highest since 2015, not 2015.

Sujata Ro shows us the future.

According to the World’s Largest Economy, it will experience a record-breaking GDP growth rate of 5.5%. Data are due Thursday. JPMorgan (NYSE) believes that this figure could rise to 7.5%. Weekly jobless benefit claims will likely fall further.

In a nutshell this is the reason why U.S. Federal Reserve considers there’s “quite enough room” to raise interest rates.

Is it possible that there will be four more rate hikes in 2019? Powell acknowledged that there was a possibility and markets began to value a fifth rise.

In this regard, Treasury two year borrowing costs reached 23-month records, shrinking the gap to 10-year yields. Tradeweb reports that the gap between the 3- and 6-month yields on the shortest-dated segments of debt, tbills, has increased sharply. This was the highest since 2018 and nearly twice as high than the month before.

A similar steepening can be observed between bill maturities, which is a sign that more tightening has been priced.

The stock market selloff, which was under control before Fed is now in full swing with global stocks falling 0.6% and Wall Street and European markets both down 0.6%.

However, bargain-hunters of another sort are available if buyers feel scared. Bill Ackman, a billionaire who bought $1 billion of Netflix shares (NASDAQ:) after Thursday’s stock market crash.

Companies continue to provide good news, as Tesla (NASDAQ) predicted a 50%+ increase in its annual growth forecast for this year. Deutsche Bank (DE:) reported its largest profit since 2011. Tesla shares fell after hours trade as buyers remained in hiding.

The following are key developments which should give direction to the markets Thursday

China’s industrial companies saw their December profit growth slowest in 1 1/2 years.

German consumer sentiment improves slightly

New Zealand’s inflation is at its highest level in three decades

South Africa expects to increase its rates by 25 basis points

U.S. Durable Goods/Advance Q4 GDP Reading/Initial Jobless Claims

-U.S. 7-year note auction

Blackstone (NYSE;), Dow chemicals and Southwest airlines. -U.S. earnings: Mastercard (NYSE.), Mastercard (NASDAQ.), JetBlue. -U.S. earnings: Mastercard (NYSE.), Mastercard (NASDAQ.), Visa (NYSE.), Mondelez.

-European earnings: LVMH Moet Hennessy Louis Vuitton, Dr Martens, UniCredit Britvic, St. James’s Place STMicroelectronics, SAP, Deutsche Bank, IG Group, Diageo (LON:), Sabadell, SEB, Polymetal