scorecardresearchFOMC Preview: Can US Federal Reserve go for a 100 basis points raise?

FOMC Preview: Can US Federal Reserve go for a 100 basis points raise?

Updated: 21 Sep 2022, 09:43 AM IST
TL;DR.
US Federal Reserve is keenly watched tonight as it announces it interest rates hike. If it goes for another 75 basis points hike, then it will be an unprecedented third straight 75 basis points hike. However, there is slight possibility that it will go for hike larger than 75 bps.
Consistently-increasing market re-pricing of the Fed since the Jackson Hole (JH) conference and the searing August inflation print implies that markets now expect a 70bps+ higher terminal rate.

Consistently-increasing market re-pricing of the Fed since the Jackson Hole (JH) conference and the searing August inflation print implies that markets now expect a 70bps+ higher terminal rate.