What global banks forecast for Fed rate hikes in 2022

Morgan Stanley now expects the Fed (pic) to deliver six 25 bps hikes this year. It had previously forecast 125 bps of tightening via four 25 bps rate hikes plus a 25 bps fed funds equivalent runoff of the Fed's balance sheet.

NEW YORK: Major investment banks have pencilled in a strong run of interest rate hikes for 2022 after hotter-than-expected inflation data ramped up pressure on the Federal Reserve to take a firmer stand against soaring prices.

Data last week showed U.S. consumer prices rose at their fastest pace since the early 1980s, fuelling market speculation for a hefty 50-basis-point hike from the Fed's March 15-16 meeting.