Economists at Danske Bank definitely think it’s the right way to go for the Federal Reserve’s interest rate hike. They change their previous position on the path of the Fed and for now predict rate hikes of 50 basis points in May, June and July and 25 basis points at each of the following meetings in 2022.
No one rules out rate hikes of 50 basis points
“We now expect the Fed to raise rates by 50 basis points in May, June and July. We expect the Fed to raise rates by 25 basis points at each of the following meetings, implying a 2.50-2.75% Fed funds rate by the end of the year“.
“Risk is still biased towards faster rate hikes And we can’t rule out a larger 75 basis point rate hike at some point or the Fed continuing to hike 50 basis points longer.”
Source: Fx Street
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