Goldman, BofA See Fed Going Big on Rate Hikes

Federal Reserve Chairman Jerome Powell made clear in a talk this week that he’s open to 50-basis point increases in interest rates, if necessary.

The Fed is reacting to rampant inflation, with consumer prices soaring 7.9% in the 12 months through February, the highest rate in 40 years. 

The central bank kicked off its rate-hike campaign last week with a 25-basis point move, putting its federal funds rate target at 0.25%-0.5%. The fed funds rate applies to overnight interbank loans

The Fed’s median forecast, released with news of the rate rise, projected six more rate hikes this year, assuming each was 25 basis points.

Source: https://www.thestreet.com/markets/rates-bonds/goldman-bofa-fed-big-rate-hikes?puc=yahoo&cm_ven=YAHOO&yptr=yahoo