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Wall Street ramps up Fed rate hike expectations as inflation roars
What is behind ‘knee-jerk buying’ during record inflation?
Lisa Ellis and Michele Schneider provide insight on the state of the American consumer on ‘Making Money.’
Wall Street is betting the Federal Reserve will raise interest rates at the steepest pace in over two decades as policymakers look to tame red-hot inflation.
Traders are already pricing in a 100% chance of a half-point rate increase during the Fed's May meeting, in addition to at least three more 50-basis point hikes at the U.S. central bank's subsequent meetings in June, July and September, according to the CME Group, which tracks trading.
FED RAISES INTEREST RATES FOR FIRST TIME IN 3 YEARS, PROJECTS 6 MORE HIKES AS INFLATION SURGES
By September, traders expect the federal funds target range to be at least 2.25% to 2.5%, well above the current range of 0.25% to 0.50%.