Published Thu, Mar 3 20229:38 AM EST Updated Thu, Mar 3 202211:09 AM EST. Economists surveyed by Bloomberg had expected a reading of 8.3%, and the print confounded some expectations for an April inflation peak.īechtel said there's a "very compelling case" for why the Fed would go ahead with the higher rate increase, citing "how far they appear to be slipping behind the curve, how much pressure the administration and the Fed itself are under in this regard and how the combination of elevated CPI and declining consumer confidence really paints an ugly picture for how the US economy is shaping up."īechtel said a move of 75 basis points would be a surprise for some who were "holding a hard line" on expectations for the Fed, led by Chair Jerome Powell, to raise the key rate by half a percentage point. Watch Federal Reserve Chair Powell speak live on policy before Senate committee. Powell warned on Friday the central bank is committed to bring. What does Powell make of the recent bloodletting that has seen the S&P 500 fall into bear-market territory while the Dow has shed 8.5 over five.
The Fed and its global counterparts have been in a race to tamp down inflation running.
"Ourselves and Barclays have increased our Fed rate call to 75bps from 50bps at this meeting as we not only think the Fed SHOULD hike but that they actually WILL hike by that order of magnitude," Brad Bechtel, the global head of FX at Jefferies, said in a note released Monday.īarclays on Friday switched its call to 75 basis points after the Bureau of Labor Statistics said the Consumer Price Index rose 8.6% in the year through May, in part as fuel prices zipped higher. Federal Reserve Chair Jerome Powell speaks during a news conference following a Fed policy meeting in Washington, D.C., on July 27. Federal Reserve Chairman Jerome Powell speaks Wednesday to a European Central Bank forum on central banking.
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