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.
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