Home » Economy » Markets brace for 100-point Fed rate hike as inflation roars to new high
Markets brace for 100-point Fed rate hike as inflation roars to new high
Peter Schiff: No way Fed can mop up inflation mess they created
LPL Financial chief equity strategist Quincy Krosby, Revere Securities CCO Scott Fullman and economist Peter Schiff discuss how the Fed can rein in inflation on ‘The Claman Countdown.’
Some Wall Street traders are betting that the Federal Reserve will take the most aggressive step in decades as it races to catch up with scorching-hot inflation.
While market consensus is for a half-point interest rate hike at the Fed's policy-setting meeting this week, the odds for a larger increase next month are surging, with a potential 75-basis point or 100-basis point jump on the table in July. About 16% of traders are penciling in a 100-basis point jump next month, compared to 53% forecasting a 75-basis point increase, according to the CME Group's FedWatch tool, which tracks trading.
INFLATION TIMELINE: MAPPING THE BIDEN ADMIN'S RESPONSE TO RAPID PRICE GROWTH
The new projections come on the heels of a scorching hot Labor Department report that showed the consumer price index, a broad measure of the price for everyday goods, including gasoline, groceries and rents, rose 8.6% in May from a year ago, faster than expected. Prices jumped 1% in the one-month period from April.